SBA loan payment table: $250K to $5M at 7(a) rate caps
The monthly payment on a Small Business Administration (SBA) 7(a) loan depends on the amount, the interest rate and the repayment length. With prime at 7.50% for illustration, a $1,000,000 loan at the rate cap over 10 years costs about $13,493 a month. The tables show payments from $250,000 to $5,000,000. Every figure is illustrative.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
How the payment is calculated
An SBA 7(a) loan amortizes like an ordinary installment loan. The monthly payment is M = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the annual interest rate divided by 12, and n is the number of monthly payments (years × 12). The tables use that formula with prime at 7.50% for illustration. Prime moves, so check the current rate; every figure here is illustrative, and none is a quote or an offer.
The rate cap is not one number. For a variable-rate loan the SOP caps the spread over the base rate by loan size, so the cap that applies to a $250,000 loan is higher than the one for $500,000. The fixed-rate cap is published in the Federal Register, and the SOP gives no figure for it.
| Loan size | Maximum spread | Rate at the cap |
|---|---|---|
| $50,000 or less | Prime + 6.5% | 14.00% |
| $50,001 to $250,000 | Prime + 6.0% | 13.50% |
| $250,001 to $350,000 | Prime + 4.5% | 12.00% |
| Above $350,000 | Prime + 3.0% | 10.50% |
Source: SOP 50 10 8.1, Appendix 18, Base Rate, Alternative Base Rate, Allowable Spread, and Frequency; General Policy on Interest Rates
Monthly payment by loan size at 10 and 25 years
Each row applies the cap for its loan size: $250,000 falls in the 13.50% tier (prime + 6.0%), and the larger loans fall in the 10.50% tier (prime + 3.0%). The last two columns show a lender pricing below the cap at prime + 1.5% (9.00%) for comparison.
| Loan amount | Rate cap | 10 years at the cap | 25 years at the cap | 10 years at prime + 1.5% (9.00%) | 25 years at prime + 1.5% (9.00%) |
|---|---|---|---|---|---|
| $250,000 | Prime + 6.0% = 13.50% | $3,807 | $2,914 | $3,167 | $2,098 |
| $500,000 | Prime + 3.0% = 10.50% | $6,747 | $4,721 | $6,334 | $4,196 |
| $1,000,000 | Prime + 3.0% = 10.50% | $13,493 | $9,442 | $12,668 | $8,392 |
| $2,000,000 | Prime + 3.0% = 10.50% | $26,987 | $18,884 | $25,335 | $16,784 |
| $5,000,000 | Prime + 3.0% = 10.50% | $67,467 | $47,209 | $63,338 | $41,960 |
Illustrative: principal and interest only, a constant variable rate, no fees, no financed upfront fee and no rate adjustments. Actual pricing is the lender's, within the caps.
For an acquisition, the 25-year columns apply only to a real estate share. The SOP says change of ownership loans "must not have an amortization that exceeds 10 years," and that real estate can go to 25 years, blended or as a separate loan. The 51% real estate maturity option does not apply to acquisitions. For the business itself, read the 10-year columns. The loan terms page covers maturity in full.
Source: SOP 50 10 8.1, Appendix 15, Loan Maturities; Appendix 17, General Requirements; Appendix 18, Base Rate, Alternative Base Rate, Allowable Spread, and Frequency
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Prepayment and what else changes the payment
The payment above is only principal and interest. A 10-year loan is exempt from the SBA prepayment fee unless its maturity is extended to 15 years or more within the first 36 months: the Subsidy Recoupment Fee of 5%, 3% and 1% in years one to three applies "For loans with a maturity of 15 years or longer," and only when more than 25% of the loan is prepaid in that year. The SOP prohibits lender prepayment fees. The upfront guaranty fee may be financed, which raises the loan amount; see the fees page. A variable rate can change monthly at most.
Source: SOP 50 10 8.1, Section A, Ch. 4, Subsidy Recoupment Fee; Prohibited Fees; SBA Guaranty Fee (Upfront Fee); Appendix 18, Frequency of Interest Rate Adjustment
What sets the size of the loan
One Standard 7(a) loan can be up to $5,000,000: "The maximum loan amount for any one Standard 7(a) loan is $5,000,000." The $5,000,000 row above is the ceiling. Whether a buyer reaches it depends on the cash flow and on the valuation. For an Initial Acquisition the minimum coverage is 1.25:1, measured on the last fiscal year-end or a two-year average, historical or adjusted, not projections. The debt allowed to support the purchase, including a seller note that is not on full standby, is "limited to the business valuation amount." A buyer also puts in at least 10% of project cost. The changes page explains the $5 million versus $10 million question.
Source: SOP 50 10 8.1, Section B, Ch. 1, Maximum Loan Amount; Appendix 15, Lender’s Credit Analysis; Adjusted Debt Service Coverage (DSC); Change of Ownership Requirements; Equity Requirements; Business Valuation Requirements - change of ownership
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Payment on the median acquisition loan, by industry
The median acquisition loan across 48,902 SBA loans (FY2018 to FY2026) is $645,250. At the prime + 3.0% cap (10.50%) over 10 years, that is $8,707 a month with prime at 7.50% for illustration. The table applies the same rate and term to the median loan in each of the twelve industries with the most loans.
| Industry | Median loan | Monthly payment | Annual payments |
|---|---|---|---|
| Full-Service Restaurants | $411,700 | $5,555 | $66,660 |
| Hotels and Motels | $2,621,250 | $35,370 | $424,440 |
| Limited-Service Restaurants | $350,000 | $4,723 | $56,676 |
| Beer, Wine, and Liquor Retailers | $650,000 | $8,771 | $105,252 |
| Gasoline Stations | $1,436,000 | $19,377 | $232,524 |
| General Automotive Repair | $562,500 | $7,590 | $91,080 |
| Plumbing, Heating, and Air-Conditioning Contractors | $734,000 | $9,904 | $118,848 |
| All Other Specialty Trade Contractors | $673,500 | $9,088 | $109,056 |
| Child Care Services | $763,300 | $10,300 | $123,600 |
| Insurance Agencies and Brokerages | $720,000 | $9,715 | $116,580 |
| Landscaping Services | $535,750 | $7,229 | $86,748 |
| Home Health Care Services | $700,000 | $9,445 | $113,340 |
Prime + 3.0% is the cap only for loans above $350,000. A median of $350,000 sits in the prime + 4.5% tier, so 3.0% is below its cap. Medians are not offers: actual rates, terms and loan sizes are set by each lender.
What this means for a business acquisition
The payment is one input to the coverage test: historical cash flow must cover all post-closing debt payments, including a seller note that is paid currently, at the 1.25:1 minimum for an Initial Acquisition. The complete buyer guide covers that test with the equity and valuation rules.
Questions buyers ask
What is the payment on a $500,000 SBA loan?
With prime at 7.50% for illustration, a $500,000 loan at the prime + 3.0% cap (10.50%) over 10 years has a monthly payment of $6,747. At prime + 1.5% (9.00%) it is $6,334. Over 25 years, which the SOP allows only for the real estate share, the payments are $4,721 and $4,196. These figures are illustrative.
What is the payment on a $1,000,000 business loan?
With prime at 7.50% for illustration, a $1,000,000 loan at the prime + 3.0% cap (10.50%) over 10 years has a monthly payment of $13,493, or $12,668 at prime + 1.5% (9.00%). The business portion of an acquisition loan may not amortize over more than 10 years (Appendix 15, Loan Maturities). These figures are illustrative.
How big of an SBA loan can I get to buy a business?
One Standard 7(a) loan can be up to $5,000,000, with affiliates combined (Section B, Ch. 1, Maximum Loan Amount). The median acquisition loan in the SBA file is $645,250. Size is driven by cash flow, which must cover debt payments 1.25 times for an Initial Acquisition, and by the valuation, because total debt is limited to the business valuation amount (Appendix 15, Lender’s Credit Analysis; Change of Ownership Requirements).
What would the payment be on a $5 million SBA loan?
With prime at 7.50% for illustration, a $5,000,000 loan at the prime + 3.0% cap (10.50%) over 10 years has a monthly payment of $67,467, or $63,338 at prime + 1.5% (9.00%). A 25-year term, available only for the real estate share, would be $47,209 at the cap. These figures are illustrative.
Do SBA loans have prepayment penalties?
Only on loans with a maturity of 15 years or longer, where the borrower pays SBA a Subsidy Recoupment Fee of 5%, 3% and 1% in years one to three when more than 25% of the balance is prepaid in that year. A 10-year loan is exempt unless its maturity is extended to 15 years or more within the first 36 months, and the SOP prohibits lender prepayment fees (Section A, Ch. 4, Subsidy Recoupment Fee; Prohibited Fees).
How is an SBA loan payment calculated?
Monthly payment = P × r ÷ (1 − (1 + r)^−n), where P is the loan amount, r is the annual rate divided by 12 and n is the number of months. The SOP caps the rate on a variable-rate loan at prime plus a spread that depends on loan size, and it gives no figure for a fixed-rate cap (Appendix 18, Base Rate, Alternative Base Rate, Allowable Spread, and Frequency).
Sources
SBA SOP 50 10 8.1 (effective October 1, 2026), headings cited:
- Appendix 18: Base Rate, Alternative Base Rate, Allowable Spread, and Frequency; General Policy on Interest Rates; Frequency of Interest Rate Adjustment
- Appendix 15: Loan Maturities; Lender’s Credit Analysis; Change of Ownership Requirements; Equity Requirements; Adjusted Debt Service Coverage (DSC); Business Valuation Requirements - change of ownership
- Appendix 17: General Requirements
- Section A, Ch. 4: SBA Guaranty Fee (Upfront Fee); Subsidy Recoupment Fee; Prohibited Fees
- Section B, Ch. 1: Maximum Loan Amount
SBA pages: 7(a) loans. Loan data: SBA 7(a) FOIA file, data.sba.gov, as of September 30, 2026.
Cite this page: SBA Acquisition Data, "SBA loan payment table: $250K to $5M at 7(a) rate caps", https://sbaacquisitiondata.com/sba-loan-payment, published November 1, 2026 (data as of September 30, 2026).
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options