SBA 7(a) max: $5,000,000
WSJ Prime Rate (2026 ~6.25%)
Monthly Payment
$8,800
Principal & Interest
Effective rate8.50%
Term10 years
Total interest$306,000
Total paid$1,056,000
About the SBA 7(a) Rate Structure
Most SBA 7(a) loans use variable rates indexed to the WSJ Prime Rate. The SBA caps the maximum spread but lenders compete below the cap for good borrowers. The most common spread for loans over $350K is Prime + 2.25%.
Typical Terms by Use of Funds
- Owner-occupied real estate: 25 years
- Equipment: 7-10 years (matched to useful life)
- Business acquisition: 10 years
- Working capital: 7-10 years
- Mixed-use (acquisition + RE): Blended term, weighted by use
Variable vs Fixed
Variable rates reset quarterly when Prime changes. If Prime rises 1%, your rate (and payment) rise 1% on the next reset. Fixed-rate 7(a) loans are allowed but rarely offered, and when offered run 1.5-2.5% above the variable rate.
What this calculator doesn't include: SBA guarantee fees (1.7-3.75% one-time on the SBA-guaranteed portion, financed into the loan). For a $750K loan with 75% guarantee, that's ~$11K-21K added to the loan balance.
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