SBA loan programs at a glance
| Program | Typical use | Maximum | Typical term |
|---|---|---|---|
| 7(a) | Working capital, equipment, buying a business, real estate, refinancing | $5 million | Up to 10 years (25 for real estate) |
| 504 | Owner-occupied real estate and long-life equipment, with a bank and a Certified Development Company | $5 million SBA portion ($5.5 million for some manufacturing and energy projects) | 10, 20 or 25 years |
| Microloan | Small working-capital and equipment needs, through nonprofit lenders | $50,000 | Up to 7 years |
How SBA caps interest rates
For 7(a) loans, SBA sets a maximum rate: a base rate plus a spread. Smaller loans are allowed a bigger spread, and fixed rates have higher caps than variable ones. Since 1 March 2026, lenders can use prime, the optional peg rate, 5- or 10-year Treasury rates or SOFR as the base (Federal Register, 10 February 2026). The current spreads are in SBA's lender rules, SOP 50 10 (sba.gov). 504 loans combine a bank loan with a fixed-rate debenture priced from Treasury rates, so their blended rate is often lower.
What lenders check: DSCR
Debt service coverage ratio (DSCR) = cash flow available for debt ÷ yearly payments on all business debt. At 1.25, you have $1.25 of cash flow for each $1 of payments. Below about 1.15, most lenders will want a smaller loan, a longer term or more collateral. The calculator shows the largest loan your cash flow supports at the DSCR you enter.
Questions
How are SBA loan payments calculated?
Most SBA 7(a) and 504 loans are fully amortizing: the same monthly payment of principal and interest over the term. A $250,000 loan at 11% over 10 years is about $3,444 a month. Variable-rate loans are recalculated when the rate changes.
How long are SBA loan terms?
SBA 7(a) loans usually run up to 10 years for working capital and equipment and up to 25 years for real estate. SBA 504 loans run 10, 20 or 25 years. Microloans run up to 7 years.
What interest rate will I pay on an SBA loan?
SBA sets maximum rates as a base rate plus a spread that depends on loan size and whether the rate is fixed or variable. Your lender quotes the actual rate, which can be at or below the maximum.
Are there fees?
7(a) loans carry an SBA guarantee fee that depends on the loan size and SBA's fee notice for the fiscal year, and lenders may charge packaging or closing costs. If fees are rolled into the loan, enter them as a percentage above.
Estimates only; not a loan offer, credit decision or financial advice. Check current rates, fees and eligibility with an SBA lender. Last reviewed 27 September 2026.