SBA Loan Calculator
Calculate monthly payments, total interest, and qualification for SBA 7(a) business acquisition loans. Free, instant results.
Loan Details
$40,000
SBA 7(a) typical: Prime + 2.75%
10 years typical for acquisitions
Yearly Breakdown
| Year | Payments | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $60,737 | $20,390 | $40,347 | $339,610 |
| 2 | $60,737 | $22,862 | $37,875 | $316,748 |
| 3 | $60,737 | $25,634 | $35,103 | $291,114 |
| 4 | $60,737 | $28,743 | $31,994 | $262,371 |
| 5 | $60,737 | $32,228 | $28,509 | $230,143 |
| 6 | $60,737 | $36,136 | $24,601 | $194,006 |
| 7 | $60,737 | $40,518 | $20,219 | $153,488 |
| 8 | $60,737 | $45,431 | $15,306 | $108,057 |
| 9 | $60,737 | $50,940 | $9,797 | $57,117 |
| 10 | $60,737 | $57,117 | $3,620 | $0 |
Monthly Payment
$5,061
Loan Amount (after down payment)
$360,000
Down Payment Required
$40,000
Total Interest Paid
$247,372
Over 10 years
Total Amount Paid
$607,372
Principal + Interest
Need a full deal analysis?
Valuation, deal structure, cash flow, DSCR - all in one report.
Try Full Analyzer →How SBA 7(a) Loans Work for Business Acquisitions
SBA 7(a) loans are the most common financing method for small business acquisitions in the US. The SBA guarantees up to 85% of loans under $150,000 and 75% of loans above that amount, making lenders more willing to finance business purchases.
Key SBA 7(a) Terms
- Down payment: Typically 10-20% of the purchase price
- Interest rate: Prime rate + 2.75% for loans over $250K (variable)
- Loan term: Up to 10 years for business acquisitions, 25 years if real estate included
- DSCR requirement: Minimum 1.25x Debt Service Coverage Ratio
- Guarantee fee: 2-3.75% of the guaranteed portion
SBA Loan Qualification Requirements
To qualify, you typically need a credit score above 680, relevant industry experience, a solid business plan, and the business must demonstrate sufficient cash flow to cover debt service (DSCR of 1.25x or higher).