Calculate your SBA 7(a) loan payment.
Monthly payment, total interest, SBA guarantee fee, and estimated cash to close — for owner-occupied real estate, business acquisition, equipment, and working capital loans up to $5M.
Current market rates Live
For context only — your deal pricing depends on lender, asset class, sponsor, and structure.
As of
- Prime
- 6.75 %
- SOFR
- 3.63 %
- 3-Yr UST
- 4.16 %
- 5-Yr UST
- 4.23 %
- 10-Yr UST
- 4.49 %
Prime Rate (WSJ)
Base rate banks charge their most creditworthy customers; reference for LOCs + many small-balance commercial loans.
Source: FRED →SOFR
Secured Overnight Financing Rate — replaces LIBOR; reference for most floating-rate commercial real estate debt.
Source: FRED →3-Year Treasury Yield
Benchmark for short-term fixed-rate CRE bridge & mini-perm financing.
Source: FRED →5-Year Treasury Yield
Benchmark for 5-year fixed-rate CRE term loans; common SBA 504 pricing reference.
Source: FRED →10-Year Treasury Yield
Benchmark for 10-year CRE fixed-rate loans, CMBS, and most permanent commercial debt.
Source: FRED →Sources: CNBC (Treasury yields), NY Federal Reserve (SOFR), WSJ (Prime Rate). Auto-refreshed daily. Hover any tile for source link.
How SBA 7(a) loans work
The SBA 7(a) program is the U.S. Small Business Administration's flagship loan guarantee — it lets banks and other SBA-authorized lenders extend credit they wouldn't otherwise approve by guaranteeing 75% (or 85% for loans ≤ $150K) of the loan. That guarantee is what makes long terms (up to 25 years for real estate), high LTVs (up to 90%), and competitive pricing possible.
Pricing — Prime + spread
Almost all SBA 7(a) loans float against the WSJ Prime Rate with a lender-negotiated spread. The SBA caps the spread:
- Loans over $350K, > 7-year term: Prime + 3.00% maximum
- Loans $50K–$350K, > 7-year term: Prime + 4.50% maximum
- Loans ≤ $50K: Prime + 6.50% maximum
Strong borrowers (high credit, established business, real estate collateral) typically negotiate down to Prime + 2.00% to 2.75%. Fixed-rate options exist but usually carry a 0.50–1.00% premium over the floating rate.
The guarantee fee
The fee is paid at closing by the borrower and almost always rolled into the loan principal. As of the current SBA SOP:
- Loans ≤ $1M: 0% fee (waived)
- Loans $1M to $2M: 1.45% of the guaranteed portion
- Loans $2M to $5M: 3.5% on first $1M guaranteed + 3.75% on portion above
For a $3M loan, that's roughly $58K of fee — material, but typically worth it given the 90% LTV and 25-year term unavailable from conventional bank debt.
What you can use SBA 7(a) for
- Owner-occupied commercial real estate (purchase, refi, expansion)
- Business acquisitions (with or without real estate)
- Equipment purchases (10-year term, can extend if useful life supports)
- Working capital and inventory
- Refinancing existing business debt (with savings test)
- Leasehold improvements and FF&E
Common reasons SBA 7(a) gets declined
The most common deal-killers we see: (1) personal credit below 680, (2) inability to demonstrate repayment from business cash flow (DSCR under ~1.15× globally), (3) less than 51% owner-occupancy for real estate loans, (4) past SBA defaults or non-citizen ownership, or (5) industry restrictions (ineligible businesses like investment / lending, gambling, certain franchises without approval).
Caplli works only with SBA Preferred Lenders — they underwrite and approve without sending the file to SBA for pre-review, which is the difference between a 60-day and a 120-day close. Submit your file and we'll pre-qualify it against current SBA lender appetite before anyone pulls credit.
SBA 7(a) — frequently asked questions
How is the SBA 7(a) interest rate calculated?
Most SBA 7(a) loans are priced as WSJ Prime Rate plus a spread (negotiated between borrower and lender). The SBA caps the spread: Prime + 3.00% for loans over $350,000 (or Prime + 4.50% for smaller, longer-term loans). Loans can be variable (re-pricing with Prime) or fixed. Our calculator defaults to Prime + 2.75% as a typical mid-market rate.
What is the SBA 7(a) guarantee fee, and who pays it?
The guarantee fee is the SBA's charge for backing the lender's loan. It's paid by the borrower at closing and typically rolled into the loan. Under the current fee structure: loans ≤ $1M have a 0% fee (waived); loans $1M–$2M pay 1.45% of the guaranteed portion; loans $2M–$5M pay 3.5% on the first $1M guaranteed plus 3.75% on the portion above. The SBA guarantees 75% of loans over $150K (85% for loans ≤ $150K).
What's the maximum SBA 7(a) loan amount?
The SBA 7(a) program caps any single loan at $5 million. For deals larger than $5M (or where 7(a) doesn't fit), the SBA 504 program covers projects up to $5.5M+ on the SBA portion, paired with a conventional first mortgage — typical 504 deals fund $1.5M to $15M+ total project size.
What's the maximum term for an SBA 7(a) loan?
Term depends on use of proceeds: owner-occupied real estate up to 25 years, equipment up to 10 years, working capital and business acquisition typically 10 years. Loans for mixed-purpose use a blended term weighted by allocation. SBA 7(a) loans are fully amortizing — there is no balloon payment.
How much down payment do I need for SBA 7(a)?
SBA SOP requires at least 10% borrower equity injection for most 7(a) loans, with the actual requirement set by the lender based on deal risk. Business acquisitions often see lenders requiring 15–25% equity (including seller financing on standby). Real-estate-only loans can sometimes go to 90% LTV with strong sponsors and the right asset.
How long does an SBA 7(a) loan take to close?
Typical timeline is 45 to 90 days from application to funding. SBA Preferred Lenders (PLP) close faster — usually 45–60 days — because they can underwrite and approve without SBA pre-review. The slow phases are usually the appraisal, environmental, and final SBA authorization. A clean application with complete financials can shave 2–3 weeks off the timeline.
Can I prepay an SBA 7(a) loan without penalty?
SBA 7(a) loans with terms of 15 years or longer have a prepayment penalty in the first 3 years: 5% in year 1, 3% in year 2, 1% in year 3, then zero. Loans under 15-year terms have no prepayment penalty. The penalty only applies when prepaying more than 25% of the loan in a single year.
Ready to pre-qualify?
Caplli is plugged into the top SBA Preferred Lender network — we'll match your deal to the lender most likely to approve and close fast.