Estimate monthly payments on an SBA 7(a) loan with Prime + spread variable rate. See how rate changes affect your payment and plan for different scenarios.
Variable rate with Prime + spread structure
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SBA 7(a) loans use a variable rate tied to the WSJ Prime Rate plus a spread. The spread depends on loan size and term: up to 2.75% for loans under $50K, 2.25% for $50K–$250K, and 1.5–2.25% for loans over $250K. Your rate adjusts quarterly as Prime changes.
SBA 7(a) offers more flexibility — funds can be used for real estate, equipment, working capital, debt refinancing, and business acquisition. SBA 504 is limited to fixed assets but offers lower fixed rates and 90% LTV. For pure real estate purchases, 504 is usually better. For mixed-use funding, 7(a) wins.
SBA charges a one-time guarantee fee: 2% for loans $150K–$700K, 3% for $700K–$1M, and 3.5% for loans over $1M, with an additional 0.25% on the portion above $1M. The fee can be financed into the loan. Annual servicing fees of 0.55% also apply but are built into the rate.
Since SBA 7(a) rates float with Prime, your payment changes quarterly. Budget for rate increases of 1–2% above current levels. Some lenders offer rate caps or interest rate swaps on larger 7(a) loans. Our advisors model worst-case scenarios to ensure comfortable debt service coverage.
Common questions about SBA 7(a) loans.
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