Question 1

What is the current SBA 7(a) loan interest rate?

Accepted Answer

SBA 7(a) loan rates are variable, based on the Prime Rate plus a lender spread (typically 1.5% to 2.75%). As of 2026, total rates are generally between 10% and 13%. The exact rate depends on loan size, term, and lender. This calculator defaults to 10.5%, which reflects a common rate for business acquisition loans.

Question 2

How is the SBA guarantee fee calculated?

Accepted Answer

The SBA guarantee fee is a one-time upfront fee based on the guaranteed portion of the loan. For loans over $1M, the fee is typically 3.5% of the guaranteed portion (75% of the loan). For loans $500K-$1M, it is 3.5%. For loans under $500K, it is lower. This fee can be financed into the loan or paid at closing.

Question 3

What SBA loan term should I choose?

Accepted Answer

SBA loan terms depend on the use of funds. Working capital and inventory loans typically have 10-year terms. Equipment loans match the useful life of the equipment (up to 10 years). Business acquisitions usually get 10-year terms. Real estate purchases can get up to 25-year terms. Longer terms mean lower monthly payments but more total interest.

Question 4

How much down payment do I need for an SBA loan?

Accepted Answer

SBA loans for business acquisitions typically require a minimum 10% down payment (equity injection). Some lenders may require more based on the deal structure. Seller financing can sometimes count toward the equity injection, reducing the cash you need at closing.

Question 5

Can I use an SBA loan to buy a business?

Accepted Answer

Yes. SBA 7(a) loans are one of the most popular ways to finance a business acquisition. They offer lower down payments (10%), longer terms (up to 10 years), and competitive rates compared to conventional business loans. Most profitable small businesses with a track record qualify.

Question 6

What is the maximum SBA 7(a) loan amount?

Accepted Answer

The maximum SBA 7(a) loan amount is $5 million. For larger acquisitions, buyers can combine an SBA loan with seller financing or other funding sources. The SBA guarantees 75% of loans over $150,000 and 85% of loans $150,000 or under.

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