Estimate Your Monthly Payments with the SBA Loan Calculator
SBA-backed loans are often considered among the best financing options for small businesses. They offer longer repayment terms and lower interest rates compared to many other financing alternatives. Before applying for an SBA loan, it is advisable to use the iBusinessLender SBA loan calculator to estimate your potential monthly payments. This tool can help you understand the financial commitment involved and plan accordingly, ensuring you make a well-informed decision for your business.
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Want to know more about this type of financing?
Using the SBA Loan Payment Calculator
To calculate your monthly payments using the SBA loan calculator, you’ll need to input the following information:
- Desired Loan Amount: You can finance up to $5 million.
- Interest Rate: Starting at 6.25%, the interest rates for SBA loans provided by iBusinessLender’s lending partners may vary. Depending on the SBA program, your interest rate could be fixed or variable. If you have a variable rate, the SBA loan payment calculator will provide an approximate loan cost.
- Loan Term: SBA loans are known for their longer terms compared to many other small business financing options.
By adjusting the loan amount and term on the SBA calculator, you can see how these factors affect your repayment amount.
Use our SBA loan calculator to estimate the costs of various types of SBA loans, such as:
- SBA 7(a) Loan Calculator
- SBA Express Loan Calculator
- SBA Commercial Real Estate Loan Calculator
- SBA Commercial Loan Calculator
This tool will help you understand the financial implications and make informed decisions about your financing options.
Interpreting Your SBA Loan Calculator Results
The SBA business loan calculator helps you determine your monthly payment, which includes both principal and interest. This fixed monthly amount makes it easier to manage your budget and plan for the future. Using the SBA loan calculator simplifies the process of evaluating various SBA financing options. You can compare payment installments across different interest rates, loan amounts, and terms, giving you a clear picture of how each option will impact your finances. This tool allows you to make informed decisions by understanding the costs associated with different SBA loan programs.
Example of How to Use the SBA Loan Calculator
Let’s consider the example of Ingrid, who owns Ingrid’s Ice Cream Shoppe and needs a $150,000 loan for renovations and equipment upgrades. She decides to go for a 7(a) loan, securing the desired amount with an 8% interest rate over a 10-year term. To accurately estimate her expenses, Ingrid uses the SBA 7(a) loan payment calculator.
By entering her loan term, amount, and interest rate into the calculator, she finds that she will need to allocate $1,820 per month for 120 months to repay the loan. This calculation helps Ingrid plan her budget and ensures she understands the financial commitment involved in taking out the loan.
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SBA Loan Interest Rates and Fees
Find out what your SBA loan payments could look like by reviewing the associated interest rates and fees. Then input these into the SBA loan calculator to estimate your costs.
Related: What Are the Current SBA Loan Rates?
Other Costs to Consider When Using SBA Loan Amount Calculator
Regarding SBA loans, it’s important to note that your lender might impose a one-time upfront fee, with variations in charges among lenders due to several factors. Some lenders base their fees on the loan term, while others levy a flat fee linked to the interest rate or a percentage of the loan amount.
In addition, lenders typically pass SBA guaranty fees on to borrowers (excluding veterans). These are upfront charges that vary based on the type, term, and amount of the loan. For example, 7(a) loans exceeding $350,000 come with guaranty fees ranging from 0.25% to 3.5%. For loans exceeding $1 million, an additional fee of 3.75% is applied. Loans over $350,000 also incur an annual service fee of either 0.49% or 0.55%, depending on the loan size.
Furthermore, additional fees may apply in cases of missed payments or defaults. For SBA lines of credit, there could be fees each time you access funds, typically ranging from 1% to 3% of the loan. Conversely, lenders might impose nominal maintenance fees for periods of credit line inactivity. These various fees can significantly impact the total cost of borrowing, so it’s crucial to understand all potential charges when considering an SBA loan.
Related: How Much Are SBA Guarantee Fees?
Comparing Offers Using an SBA Loan Calculator
After using the iBusinessLender SBA loan calculator, you’ve seen how affordable an SBA loan can be.
If your business has been operational for at least two years, generates annual revenue of $50,000 or more, and has a credit score of 650 or higher, it’s time to move forward with your application.
An iBusinessLender Business Advisor will reach out to guide you through every step of the funding process. They will take the time to understand your specific funding needs and present you with the best available options. This may include SBA loan programs tailored to your situation, ensuring you secure the most favorable terms.
For any questions or to discuss your SBA loan calculator results in more detail, contact us directly at (866) 449-3616 to speak with one of our knowledgeable Business Advisors.
