SBA 7(a) loan calculator
Estimate what an SBA 7(a) loan to buy a business really costs. Enter the price and your down payment (10% minimum on a change of ownership) for the loan amount, monthly payment, the upfront SBA guaranty fee and the total cash you need at close. Add the business's annual cash flow (under Advanced) to check the debt-service coverage ratio (DSCR) — the number lenders approve on — then score the whole deal in the calculator.
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Estimate only. SBA 7(a) eligibility requires US citizen/PR ownership, an eligible business type and SBA size standards; rates are variable (Prime + spread). Confirm with an SBA lender.
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Try the business valuation calculator →Frequently asked questions
- How much down payment does an SBA 7(a) loan need?
- For a change of ownership (buying a business), the SBA requires a minimum 10% equity injection of the total project cost — so the loan covers up to 90%. The down payment can be a blend of buyer cash and, in some cases, a seller note on standby. Lenders may ask for more than 10% on weaker deals.
- What is the SBA guaranty fee?
- A one-time upfront fee on the SBA-guaranteed portion of the loan (the SBA guarantees 85% of loans up to $150k, 75% above). For FY2026 it's 2% of the guaranteed portion under $150k, 3% from $150k–$700k, and 3.5% up to $1M of the guaranteed portion plus 3.75% above. Lenders usually let you finance it into the loan.
- What DSCR do SBA lenders require?
- Most SBA lenders underwrite to a minimum 1.25× debt-service coverage ratio — the business's annual cash flow divided by its annual loan payments. Below 1.25× the deal typically needs a lower price, more equity, or a longer term. This calculator flags where you land.
- What are SBA 7(a) terms and rates?
- Business-acquisition loans run up to a 10-year term (up to 25 years if real estate is included). Rates are variable — a base rate (Prime) plus a lender spread — and have recently sat around 10.5–11.5%. Eligibility requires US citizen/PR ownership, an eligible business type and SBA size standards.