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 shown in the business loan calculator 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 is a good thing for you because this translates into lower SBA loan interest 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 business loan calculator, so please keep this in mind while you are considering applying.
In order to qualify for an SBA loan, a business must meet certain small business requirements outlined by the SBA. Keep in mind that lenders may also have their own set of requirements that a business must meet in order to qualify. In general, the Small Business Administration has the following requirements:
The express loan and the 7(a) loans are among the most popular small business loans in the SBA loan program. The differences are rather simple. To start, the express loan has a lower maximum loan amount of $500,000. Next, there is an average shorter approval time of around 45-60 days. Finally, there's no required collateral under $25,000, and lenders may use their existing collateral policy for loans between $25,000 and $500,000.
It's normal to have several questions about the SBA 7(a) loan calculator and the SBA 7(a) loan process.
Are SBA 7(a) loans forgivable?
Can the restitution of loan proceeds be forgiven? The SBA doesn't repay debts from businesses that are still in operation. Business owners have to sign loan documents stating they will make full SBA loan payments during the loan period.
However, this loan is attractive for banks because the SBA will cover 50-75% of the remaining debt if the business defaults.
How much do you have to put down on a SBA 7a loan?
Does SBA lending require a down payment for borrowers? Yes. The SBA requires a minimum loan down payment for all 7a loans of 10%. The down payment requirement may rise up to 30% if there's poor cash flow or low-value collateral.
What is the maximum 7a loan amount?
The maximum loan amount is $5 million.
What is amortization?
Similar to other accounting concepts, amortization is an intimidating, big word with a surprisingly simple definition. Simply put, amortization means dividing the loan repayment over the total loan term. When you look at an amortization calendar, the tool will tell you what your estimated monthly payment is and when you are projected to pay off your business loan.