SBA loan calculator for 7a, 504 loans

Try our free SBA 504, 7(a) and microloan calculators to see what payment terms work best for your business.

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What exactly is Ramp?

Ramp is an all-in-one card, bill pay, and expense management solution. We simplify how your company spends money and highlight wasteful spend. Duplicate software licenses, monthly plans you should switch to annual, over $350,000 in pre-negotiated partner discounts – all designed to save you time & money.

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How does Ramp’s Business Loan Calculator work?

The SBA loan calculator by Ramp is a helpful tool that can assist small business owners in estimating their potential loan payments and overall costs. To use the calculator, users simply input the desired loan amount, the interest rate, and the repayment term. The calculator then provides an estimated monthly payment, as well as the total interest paid over the life of the loan.

This information can be useful in helping small business owners determine whether an SBA loan is the right financing option for their needs, and to plan their budget accordingly. Additionally, the calculator can help borrowers compare different loan options to determine which one offers the most favorable terms.

What is an SBA loan?

An SBA loan is a loan for small businesses guaranteed by the U.S. Small Business Administration (SBA), and issued by participating lenders, usually banks and credit unions. SBA loans typically offer favorable terms to borrowers, making them a great option for businesses who are eligible. These loan programs are appealing to small businesses because they are guaranteed by the SBA and can have flexible monthly payments, providing business owners with the working capital they need.

What are the most common types of SBA loans?

There are various types of SBA loans, but the most common are SBA 7(a) loans, 504 loans, and Microloans.

  • SBA 7(a) loans: 7a loans are the most common type of SBA loan, and are designed to provide financial assistance to small businesses that are creditworthy but cannot qualify for a conventional loan.
  • SBA 504 loans: 504 loans provide long-term, fixed rate financing for fixed assets such as real estate and large equipment. They are designed to promote business growth and job creation through the purchase or improvement of these fixed assets.
  • SBA Microloans: The SBA Microloan program provides small loans of up to $50,000 to help small businesses start up and expand.‍

What is a standard interest rate for an SBA loan?

Standard loan interest rates vary by the type of SBA loan. As of October 15, 2022, interest rates are:

  • SBA 7(a) loan rates: 8.5% - 11%
  • SBA 504 loan rates: 5.3% - 5.5%
  • SBA Microloan rates: 6% - 9%

The specific interest rates for each program may vary based on factors such as the size and term of the loan, the borrower's creditworthiness, and the current market conditions.

What is the standard duration of a small business loan?

While businesses should choose the payment amount terms that make the most sense for them, they should be aware of the term lengths for each type of loan.

  • SBA 7(a) term lengths: Up to 10 or 25 years, depending on the use of the loan
  • SBA 504 term lengths: Up to 10, 20, or 25 years depending on the use of the loan
  • SBA Microloan term lengths: Up to 6 years

How much can you borrow on an SBA Loan?

The amount that you can borrow on an SBA loan depends on several factors, such as the type of loan you are applying for, your creditworthiness, the purpose of the loan, and the lender's requirements.

The SBA does not set a maximum loan amount for all its loans but instead sets a maximum guarantee amount that it will provide to lenders in case of default. For example, the maximum SBA guarantee amount for the popular 7(a) loan program is 85% for loans up to $150,000 and 75% for loans greater than $150,000. However, the lender ultimately decides how much they are willing to lend based on their evaluation of the borrower's creditworthiness and financial capacity.

How do I qualify for an SBA Loan??

To qualify, small businesses must:

  • Meet the SBA's eligibility criteria, such as being a for-profit business in the United States that has invested equity and exhausted other financing options.
  • Have a solid business plan that outlines how the loan funds will be used and how the loan will be repaid.
  • Have a good credit score and a strong financial history, as determined by the SBA's review of financial statements, tax returns, and other financial information.
  • Meet the specific requirements of the loan program for which they are applying, as different programs have different criteria.
  • Complete an SBA loan application and provide the necessary documentation, including financial statements, tax returns, business licenses, and other supporting documents.

By meeting these requirements and carefully preparing their application, small businesses can increase their chances of qualifying for a loan and obtaining the funding they need to grow and succeed.

‍How do I apply for an SBA Loan?

Applying for an SBA loan can be a complex process, but it's a great option for small business owners who need financing. Following these steps below can help the process of applying:

  1. Determine which loan program is right for your business.
  2. Gather the necessary documentation, including financial statements, tax returns, business licenses, and other supporting documents.
  3. Complete the loan application, which can be done online or in person at an SBA-approved lender.
  4. Submit your application and supporting documentation to the SBA-approved lender.
  5. Wait for the SBA-approved lender to review your application and make a decision.
  6. If approved, review and sign the loan agreement and any other required documents.
  7. Receive the loan funds and use them for the approved purpose.

It's important to note that the application process can be time-consuming and requires careful attention to detail. It's recommended that small business owners work with an experienced accountant or financial advisor to ensure that their application is complete and accurate.

What is the best way to get an SBA loan?

Once you determine the type of SBA loan that best suits your business needs, you should ensure you meet the eligibility requirements and gather all the necessary loan application documentation. From there, you can find a lender by visiting the SBA website, contacting one of the big-name US financial institutions, or browsing online loan marketplaces. It is important to be diligent when evaluating lenders, and often best to work with lenders with strong track records within the SBA program.

The information provided in this article does not constitute legal or financial advice and is for general informational purposes only. Please check with an attorney or financial advisor to obtain advice with respect to the content of this article.

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“An SBA loan calculator is an invaluable tool for entrepreneurs and small business owners. It empowers them to make informed financial decisions by providing accurate estimates of loan payments, interest rates, and repayment terms. With its user-friendly interface and precise calculations, the SBA loan calculator streamlines the loan planning process, saving time and ensuring financial transparency for successful business growth.”
Brad Gustafson
Senior Manager, Accounting Partnerships


What are other helpful resources to learn more about SBA loans?
For additional information on SBA loan requirements, eligibility, duration, and more, you can visit the SBA loan website.
What are other common types of business loans?
Common business loan types include SBA loans, private loans, and conventional bank loans. You can learn more about each of these, and how to evaluate which one is right for you, using this overview.
How can Ramp help you grow your small business?
Over 10,000 businesses currently use Ramp to help save time and money. Learn more about how Ramp helps small businesses automate their spend, simplify expenses, manage invoices, and maximize savings here.

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