Business Loan Calculator
Calculate your monthly payment, total interest, and amortization schedule for any business loan or SBA loan.
First 12 Months Amortization
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
Interest-only period shown. Full principal balloon payment is due at term end.
Monthly Payment
SBA Loan vs. Traditional Business Loan
SBA 7(a) loans are the most popular government-backed small business loans, offering amounts up to $5 million with repayment terms up to 10 years for working capital or 25 years for real estate. Because they're partially guaranteed by the SBA, lenders can offer lower rates than conventional loans — typically prime + 2.75% to 4.75%.
Traditional business loans from banks or credit unions offer faster approvals and fewer restrictions, but typically require strong credit (700+), 2+ years in business, and strong revenue. They're better for businesses that don't qualify for or need SBA backing.
SBA 7(a) Loan
- Up to $5M loan amount
- Terms up to 25 years
- Lower rates (prime + spread)
- Slower approval (30–90 days)
Traditional Bank Loan
- Flexible loan amounts
- Terms typically 1–10 years
- Higher rates possible
- Faster approval (1–2 weeks)
How to Qualify for a Small Business Loan
Maintain a strong credit score
Most lenders require a personal credit score of 680+ for conventional loans. SBA loans can accept scores as low as 640, but higher is better.
Show at least 2 years of business history
Lenders want to see a track record. Startups under 2 years old have fewer options — look into microloans or SBA startup programs.
Demonstrate sufficient cash flow
Your business should have a debt service coverage ratio (DSCR) of at least 1.25, meaning $1.25 of income for every $1.00 of debt payments.
Prepare your financial documents
Have 2–3 years of business tax returns, profit and loss statements, balance sheets, and bank statements ready before applying.