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SBA Loan Calculator: payment, fees, and the DSCR your bank will run

Enter the loan you're considering. You'll see the amortizing 7(a) payment, the one-time SBA guaranty fee, total interest over the term, and whether your cash flow clears the 1.25x coverage ratio underwriting requires — updated live, no email required.

7(a) guaranty fee included Reviewed by a 40-year commercial banker No signup, instant results

Your loan

Loan amountSBA 7(a) maximum is $5,000,000.Interest rate (%)Most 7(a) loans are variable off prime. Use the rate you've been quoted.Term (years)10 years for working capital, equipment, or acquisition; up to 25 for real estate.Annual net operating incomeNet income plus interest, depreciation, amortization, and documented add-backs.Existing annual debt serviceTwelve months of principal and interest on current notes, lines, and leases.Finance the guaranty feeMost lenders roll the SBA fee into the loan instead of collecting it at closing.

Estimated payment

$6,899/mo

DSCR 1.69x — Strong

This payment sits comfortably inside SBA coverage requirements. Underwriting will focus on documentation quality rather than capacity.

SBA guaranty fee (est.): $11,250
Amount financed: $511,250
Cash due for fee at closing: $0
Annual debt service (new loan): $82,783
Total debt service incl. existing: $106,783
Total interest over term: $316,576
Total repaid: $827,826
Max payment supportable at 1.25x: $10,000/mo

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What actually drives your SBA payment

An SBA 7(a) loan is fully amortizing, so the payment is arithmetic — but three inputs decide whether the deal closes: the term you qualify for, the rate spread over prime, and the guaranty fee your lender finances into the principal. Your books decide the fourth: whether the income an underwriter can document supports the payment at 1.25x.

Term does more than rate

Moving a $500,000 request from 10 years to 25 years cuts the monthly payment by roughly a third. Term eligibility follows use of proceeds, though: only deals dominated by real estate reach 25 years.

The guaranty fee is real money

On a $700,000 loan the one-time fee runs near $15,750 on the guaranteed portion. Financed into the loan it raises principal and payment slightly; paid at closing it comes out of working capital.

Variable rates reprice

Most 7(a) loans float over prime and adjust quarterly. Stress the rate two points higher than quoted and confirm the payment still clears coverage before you sign.

Coverage is calculated globally

Underwriters combine business cash flow with guarantor obligations and every existing note. Debt left off your schedule and found in the tax returns costs you credibility, not just ratio.

A payment you can afford only helps if the statements behind it hold up. The SBA loan bookkeeping guide lists every document a lender requests. To score coverage on its own, use the DSCR calculator or the loan affordability calculator. If the history needs rebuilding first, start with catch-up bookkeeping, then get loan-ready financials in Houston.

Estimates only. Guaranty fee tiers, rate caps, and eligible terms are set by the SBA and your lender and change over time. Confirm final figures with your bank.

Free review

Have a banker check your SBA package before you apply

We'll recalculate coverage from your actual books, flag what an underwriter would question, and quote a flat fee if cleanup is needed — usually within one business day.

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SBA loan questions we get from Houston borrowers

How is an SBA 7(a) payment calculated?

SBA 7(a) loans are fully amortizing, so the payment is standard amortization: principal and interest spread evenly across the term. A $500,000 loan at 10.5% over 10 years runs roughly $6,750 per month. There is no balloon on a 7(a).

What is the SBA guaranty fee?

The SBA charges a one-time guaranty fee on the guaranteed portion of the loan. As a working estimate: about 2% on loans up to $150,000, 3% from $150,001 to $700,000, 3.5% from $700,001 to $1,000,000, and 3.5% on the first $1,000,000 plus 3.75% on the balance above it. Lenders usually finance the fee into the loan.

What DSCR do SBA lenders require?

Most SBA 7(a) lenders underwrite to a minimum 1.25x debt service coverage ratio on a global basis, meaning business cash flow plus any required personal guarantor income against all debt payments including the proposed loan.

What terms are typical for SBA 7(a) loans?

Ten years is standard for working capital, equipment, and business acquisition, and up to 25 years when the majority of the proceeds fund commercial real estate. Rates are variable off prime for most 7(a) loans and reprice quarterly.

Why does my payment estimate differ from the bank's quote?

Banks add packaging, appraisal, environmental, and closing costs, and may finance the guaranty fee into the principal. Variable-rate 7(a) loans also reprice, so the quoted payment reflects today's prime rate only.

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