{
  "id": "sba-loan",
  "version": "3e0a9ea8fe7d",
  "status": "published",
  "name": "SBA Loan Calculator",
  "question": "What will my SBA loan cost?",
  "summary": "Computes the monthly payment, the SBA guaranty fee for fiscal year 2027, the total cost, and the APR of an SBA 7(a) term loan.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/sba-loan-calculator",
  "markdown": "https://www.acalculator.org/finance/sba-loan-calculator.md",
  "kind": "schedule",
  "method": "payment = L × r ÷ (1 − (1 + r)^−n), with r = rate ÷ 1200 and n the months; guaranty fee = fee rate × the guaranteed portion (85% of L up to $150,000, 75% above), by the FY 2027 table; APR = 12 × j, where the payments discounted at j add up to L minus the fees.",
  "assumptions": [
    "The rate is fixed; interest is the balance × the yearly rate ÷ 12 each month, and the loan is repaid by equal monthly payments.",
    "The guaranty fee uses the SBA’s fiscal year 2027 rates for loans approved October 1, 2026 to September 30, 2027.",
    "All fees are paid at closing, in cash or out of the loan, and count as a cost in the APR.",
    "The lender’s annual service fee (0.55% of the guaranteed balance) is paid by the lender and may not be passed on, so it is not included.",
    "Values are not rounded to the cent between months; only the display is rounded."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "amount": {
        "title": "Loan amount",
        "description": "The gross 7(a) loan amount, the SBA-guaranteed and unguaranteed parts together.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 5000000
      },
      "rate": {
        "title": "Interest rate",
        "description": "The fixed yearly rate. The monthly rate is this ÷ 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "years": {
        "title": "Loan term (years)",
        "description": "The maturity in years: up to 10 for working capital and equipment, up to 25 for real estate; 0.5 is 6 months.",
        "type": "number",
        "exclusiveMinimum": 0,
        "maximum": 25
      },
      "relief": {
        "title": "Manufacturer, food supply chain, or rural business",
        "description": "In fiscal year 2027 the SBA charges no upfront fee on loans of $700,000 or less to manufacturers, listed food supply chain businesses, and businesses in rural areas.",
        "type": "boolean"
      },
      "other": {
        "title": "Other fees",
        "description": "Other up-front fees in dollars (packaging, closing, legal), paid out of the loan.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 5000000
      },
      "start": {
        "title": "Loan start date",
        "description": "The day the loan starts. The first payment is one month later.",
        "type": "string",
        "format": "date"
      }
    }
  },
  "outputs": {
    "payment": {
      "label": "Monthly payment",
      "description": "The level monthly payment.",
      "format": "money"
    },
    "fee": {
      "label": "SBA guaranty fee",
      "description": "The upfront fee on the SBA-guaranteed portion, at the fiscal year 2027 rates.",
      "format": "money"
    },
    "guaranteed": {
      "label": "SBA-guaranteed portion",
      "description": "85% of a loan of $150,000 or less, 75% of a larger loan.",
      "format": "money"
    },
    "feeShare": {
      "label": "Guaranty fee as a share of the loan",
      "description": "The guaranty fee divided by the loan amount.",
      "format": "percent"
    },
    "apr": {
      "label": "APR",
      "description": "The yearly rate at which the payments repay the loan minus all fees, so the fees count as a cost.",
      "format": "percent"
    },
    "payments": {
      "label": "Number of payments",
      "description": "How many monthly payments repay the loan.",
      "format": "integer"
    },
    "interest": {
      "label": "Total interest",
      "description": "All the interest over the term.",
      "format": "money"
    },
    "fees": {
      "label": "All fees",
      "description": "The guaranty fee plus the other fees.",
      "format": "money"
    },
    "cash": {
      "label": "Loan minus fees",
      "description": "The loan amount minus all fees: the cash left when the fees come out of the loan.",
      "format": "money"
    },
    "cost": {
      "label": "Cost of the loan",
      "description": "The interest plus all the fees.",
      "format": "money"
    },
    "paid": {
      "label": "Total of payments",
      "description": "The loan amount plus all the interest.",
      "format": "money"
    },
    "payoff": {
      "label": "Last payment",
      "description": "The month of the last payment, when a start date is given.",
      "format": "month-year"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "amount": 350000,
      "rate": 10.5,
      "years": 10,
      "relief": false,
      "other": 0,
      "start": "2026-09-30"
    },
    "outputs": {
      "payment": 4722.724887144144,
      "fee": 7875,
      "guaranteed": 262500,
      "feeShare": 2.25,
      "apr": 11.051363404049704,
      "payments": 120,
      "interest": 216726.98645729735,
      "fees": 7875,
      "cash": 342125,
      "cost": 224601.98645729735,
      "paid": 566726.9864572973,
      "payoff": "2036-09-30"
    },
    "text": "A $350,000.00 SBA 7(a) loan at 10.5% over 10 years costs $4,722.72 a month; the SBA guaranty fee is $7,875.00 and the APR is 11.05%."
  },
  "examples": [
    {
      "given": {
        "amount": 350000,
        "rate": 10.5,
        "years": 10,
        "relief": false,
        "other": 0
      },
      "expect": {
        "guaranteed": 262500,
        "fee": 7875,
        "payment": 4722.724887144135,
        "interest": 216726.98645729618,
        "apr": 11.051363404049752,
        "feeShare": 2.25
      },
      "source": "SBA Information Notice 5000-881797 (3% of the guaranteed portion for $150,001 to $700,000); hand calculation in content.mdx; Python 3 in docs/progress/WP-49/python/sba.py"
    },
    {
      "given": {
        "amount": 2000000,
        "rate": 9,
        "years": 25,
        "relief": false,
        "other": 5000
      },
      "expect": {
        "guaranteed": 1500000,
        "fee": 53750,
        "fees": 58750,
        "payment": 16783.927272696834,
        "apr": 9.368798285647067
      },
      "source": "SBA Information Notice 5000-881797 (3.5% up to $1,000,000 of the guaranteed portion plus 3.75% above it); hand calculation in content.mdx"
    },
    {
      "given": {
        "amount": 100000,
        "rate": 11,
        "years": 1,
        "relief": false,
        "other": 0
      },
      "expect": {
        "guaranteed": 85000,
        "fee": 212.5,
        "payments": 12,
        "payment": 8838.165852160315,
        "apr": 11.403258830485495
      },
      "source": "SBA Information Notice 5000-881797 (0.25% of the guaranteed portion for 12 months or less); hand calculation in content.mdx"
    },
    {
      "given": {
        "amount": 600000,
        "rate": 10,
        "years": 10,
        "relief": true,
        "other": 0
      },
      "expect": {
        "fee": 0,
        "apr": 10,
        "payment": 7929.044212905715
      },
      "source": "SBA Information Notice 5000-881797 (0% for loans of $700,000 or less to manufacturers, food supply chain, and rural businesses)"
    }
  ],
  "sources": [
    "U.S. Small Business Administration, Information Notice 5000-881797, 7(a) Fees Effective October 1, 2026 for Fiscal Year 2027 (published September 3, 2026). https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees",
    "Small Business Act, 15 U.S.C. 636(a)(2)(A) (guaranty of 85% for loans of $150,000 or less and 75% above) and 636(a)(3)(A) (loan limit). https://www.law.cornell.edu/uscode/text/15/636",
    "U.S. Small Business Administration, 7(a) loans: terms, rates, and fees. https://www.sba.gov/funding-programs/loans/7a-loans",
    "Regulation Z, 12 CFR 1026 appendix J, Annual percentage rate computations for closed-end credit transactions (actuarial method). https://www.consumerfinance.gov/rules-policy/regulations/1026/j/"
  ],
  "related": [
    "business-loan",
    "commercial-loan",
    "commercial-mortgage",
    "loan"
  ],
  "changelog": []
}