SBA 7(a) Loan Calculator
Calculate monthly payments and fees for SBA 7(a) commercial real estate loans with up to 90% financing.
Max $5M for SBA 7(a)
Typically Prime + 2.25% to 2.75%
About SBA 7(a) Loans
The SBA 7(a) loan program is the SBA's primary lending program for small businesses. It offers up to 90% financing with competitive rates.
Key Features:
- Up to $5 million loan amount
- Up to 25 years for real estate
- Lower down payments (10-20%)
- No balloon payments
- 85% guarantee up to $150K, 75% above
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Expert FAQ
What is the "51% Occupancy Rule" for SBA real estate?
To qualify for an SBA 7(a) loan for an existing building, the borrower's business must occupy at least 51% of the total square footage. For ground-up construction, the requirement starts at 60% and must grow to 80% over time.
How does the SBA "Guarantee Fee" work?
The SBA charges an upfront fee (often 2-3% of the guaranteed portion of the loan). While it can be financed into the loan, it represents a significant upfront cost compared to conventional lending, aiding the government's ability to back high-leverage loans.
What is the maximum maturity for an SBA 7(a) real estate loan?
SBA 7(a) loans for real estate carry a maximum maturity of 25 years, providing significantly lower monthly payments compared to the 10- or 15-year terms common in conventional commercial bank loans, with no balloon payments.
Can an SBA 7(a) loan be used for "Partner Buyouts"?
Yes, one of the unique features is that it can fund the acquisition of a partner's interest in the business, provided the remaining owner is actively involved in operations and the business meets underwriting standards.
What happens to the loan if the business is sold?
SBA 7(a) loans are typically not assumable. If the business or property is sold, the loan must be paid off in full, often including a prepayment penalty if the payoff occurs within the first three years.