SBA 7(a) Loan Calculator
Model a 7(a) loan with FY2026 guaranty fees and live Prime — and see whether the quoted rate is even legal under the SBA maximum for your loan size.
Written by Dorothy Ibrahim, 10+ years in banking & finance
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How we calculate this
This calculator models an SBA 7(a) loan the way it is actually priced: a rate built from Prime plus a lender spread, an upfront guaranty fee charged on the SBA-guaranteed portion, and an annual service fee on the guaranteed balance. It also runs a check most tools skip — whether the quoted spread is even legal, since the SBA caps how far above Prime a lender may charge based on your loan size.
The formulas
- Interest rate used
- Prime rate + lender spreadPrime is pre-filled at 6.75% (as of Dec 11, 2025) and editable — check WSJ for the current figure.
- Maximum legal rate check
- Prime + the SBA maximum spread for your loan size: 6.5 points up to $50,000 · 6.0 points at $50,001–$250,000 · 4.5 points at $250,001–$350,000 · 3.0 points above $350,000A quote above this cap is flagged — negotiate or verify it.
- Guaranteed portion
- loan amount × 85% (loans up to $150,000) or × 75% (above $150,000)
- Upfront guaranty fee
- 0% at or below $150,000 (waived, FY2026); above that, a tiered percentage of the guaranteed portion — 3.0% up to a $700,000 loan, then 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% of the guaranteed portion above itTier percentages carry a verify-before-publish flag — see sources and limitations.
- Effective rate (ongoing)
- interest rate + 0.55% annual service fee × guaranty percentageApproximates the lender-passed-through service fee on the outstanding guaranteed balance.
- Monthly payment and true APR
- standard amortization at the rate used; APR is the internal rate of return after subtracting the upfront guaranty fee from your proceeds
Worked example
- Say you borrow $250,000 for working capital over 120 months, at Prime 6.75% plus a 2.75% spread = 9.50%.
- The max-rate check passes: at $250,000 the SBA cap is Prime + 6.0 points = 12.75%, and 9.50% is well under it.
- The guaranteed portion is $250,000 × 75% = $187,500, and the upfront guaranty fee is 3.0% × $187,500 = $5,625.
- The monthly payment is $3,234.94; total interest over 120 months is $138,192.67, for a total cost (interest + guaranty fee) of $143,817.67.
- The true APR including the upfront fee is about 10.04%, and the effective ongoing rate with the 0.55% service fee on the 75% guaranteed balance is about 9.91%.
- Versus a typical 24% online lender (a rule-of-thumb comparison) over the same 120 months, this structure saves roughly $273,250 in interest.
Rates, benchmarks & sources
- Prime rate pre-fill of 6.75%, effective Dec 11, 2025 — a live input you should update to the current published figure. — WSJ Prime Rate / HSH.com
- Upfront guaranty-fee tiers (0% waived at or below $150,000; 3.0% / 3.5% / 3.75% tiers above) — recorded in config as verify-at-build against the current FY2026 SBA fee notice. — SBA SOP 50 10 / annual SBA guaranty-fee notice (standard statutory schedule; verify FY2026)
- $5,000,000 maximum loan, 85%/75% guaranty split at $150,000, maximum spreads by loan size, 0.55% annual service fee, and the 120/300-month term caps. — SBA 7(a) program parameters (config, status: confirmed-with-verify)
- The 24% "typical online lender" comparison rate used for the savings delta. — Industry rule of thumb
Figures current as of 2026-07-02. See our methodology & editorial standards for how constants are versioned and verified.
What this tool doesn’t model
- The FY2026 upfront guaranty-fee tiers above $150,000 are the long-standing statutory schedule and are flagged verify-at-build in config — confirm against the current SBA fee notice before relying on the fee dollar amount.
- This estimates cost only — SBA eligibility (size standards, use of proceeds, owner guarantees) and lender underwriting decide whether and at what spread you are actually approved.
- Assumes a fixed rate for the whole term; most 7(a) loans are variable and reprice as Prime moves, so payments will drift from this schedule.
- The annual service fee is modeled as a rate add-on approximation rather than a declining-balance fee schedule.
- Packaging fees, closing costs, and any lender extras beyond the guaranty fee are not included in the APR.
Frequently asked questions
What does the "maximum allowed rate" mean — can a lender really not exceed it?
The SBA caps the spread a lender may charge over the base rate, and the cap depends on loan size — for a $250,000 loan it is Prime + 6.0 points. A quote above the cap is not a valid 7(a) offer. If this tool flags your quote, ask the lender to re-price it or confirm the loan is actually being processed under a different program.
Why is there no upfront guaranty fee on my loan?
For FY2026, config records the upfront guaranty fee as waived (0%) on 7(a) loans of $150,000 or less. Above that, the fee applies to the SBA-guaranteed portion of the loan, not the whole amount — which is why a $250,000 loan pays 3.0% of $187,500, not 3.0% of $250,000.
Why does the calculator show both an APR and an "effective rate"?
They capture two different costs. The true APR folds the one-time upfront guaranty fee into the rate, so you can compare this loan against any other offer. The effective rate instead adds the ongoing 0.55% annual service fee on the guaranteed balance, approximating what you pay year after year. Together they show the full picture the note rate alone hides.
Is a 7(a) loan always cheaper than an online lender?
Usually much cheaper on rate — the worked example shows roughly $273,250 less interest than a 24% online loan over 120 months, using a rule-of-thumb comparison rate. The tradeoff is time and paperwork: SBA loans require more documentation and take longer to close, so very short-term needs sometimes justify costlier, faster money.
Will I actually get the rate this calculator shows?
Not necessarily — this is an estimate built from the terms you enter, and the actual offer depends on the lender's underwriting of your business, collateral, and credit. The spread is negotiated with the lender within the SBA cap, and Prime itself moves. Treat the output as a way to evaluate and compare quotes, not as a promise of pricing.
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themoneysheet provides educational estimates, not financial, tax, or legal advice. Figures use published rates and formulas current as of the date shown, but your situation may differ. Consult a qualified professional (CPA, attorney, or licensed advisor) before making financial decisions. Rates shown are estimates; actual offers depend on lender underwriting.