SBA loans are a great option for business owners looking for an affordable source of business capital. With low rates and some of the longest terms of any small business loan, SBA loans can be used for a wide variety of business needs with lower monthly payments than most other types of business loan.
The SBA Loan Calculator can help you estimate your monthly payment based on a range of loan amounts and terms.
The prime rate is as of 6/1/2020 (3.25%)
Interest rate is dependent on the size of the loan. Loans greater than $250,000 cannot exceed 8.25%. Loans greater than $50,000 and less than or equal to $250,000 cannot exceed 9.25%. Loans greater than $25,000 and less than or equal to $50,000 cannot exceed 10.25%. Loans less than $25,000 cannot exceed 11.25%.
The monthly payment on your SBA loan is determined by the total loan amount, the interest rate, and the term length. SBA financing can be used for purchasing inventory, working capital, equipment, consolidating debt, and other business uses.
When you have determined the loan amount that you would like to request, you can adjust the term length and the interest rate on the SBA Loan Calculator to find the monthly payment that fits best in your budget. The amortization schedule shows how much of your payment is going to interest and the principal amount each month.
It’s important to note that SBA loans are guaranteed in part by the US government. This helps mitigate the risk that the lender is taking on. This is a good thing for you because this translates into lower rates and is one of the reasons that SBA loans are one of the most affordable options available to small businesses. There is a guaranty fee associated with the SBA guarantee, which is 2% for loans up to $150k and 3% for loans greater than $150k up to $700,000.
You can also expect there to be other potential fees associated with SBA financing, such as a packaging fee. These fees are not factored into the SBA Loan Calculator so please keep this in mind while you are considering applying.