For buyers
SBA 7(a) loan calculator
Put in the deal you are looking at. We size the loan the way a lender does: project cost, the 10% injection split between your cash and a standby seller note, the guarantee fee, the payment at today's prime, and whether the business clears 1.25x coverage on historical cash flow.
PassEquity injection of $165,438 is 10.0% of total project cost ($1,654,376, guarantee fee included) and meets the 10% minimum.
PassStandby note is within the half of the injection the SOP allows.
PassCoverage of 1.50x clears the 1.25x most lenders underwrite to on historical cash flow.
A standby note accrues interest but takes no payments for the life of the SBA loan, so it is excluded from debt service here. A note on partial standby (interest only, or payments after year two) would count.
How lenders size the loan
Total project cost is the purchase price plus the working capital you borrow, closing costs, and the SBA guarantee fee. The equity injection is 10% of that number under SOP 50 10 8.1, effective October 1, 2026. Up to half can come from the seller as a note on full standby, meaning no payments for the life of the SBA loan, which is why most deals we close are structured as 5% buyer cash and 5% standby note. The rest, up to $5,000,000, is the 7(a) loan, amortized over 10 years for the business portion (25 years when real estate is the majority of the project).
The payment is set by prime plus the lender's spread. The test that decides the deal is coverage: cash flow after a reasonable salary for you, divided by the annual payment, measured on the last tax year rather than a projection. Lenders want 1.25x. When the ratio falls short, the fix is some mix of a lower price, more equity, a larger standby note, or a longer seller-paid transition that lets you keep the owner's salary in the numbers for a year.
If you are earlier in the process and want to know what size business your liquidity supports, start with the acquisition calculator. The SBA 7(a) acquisition loan guide covers the rules behind every line here, and the state pages cover local licensing and tax items lenders check.
Frequently asked questions
How much do I have to put down on an SBA 7(a) acquisition?+
SOP 50 10 8.1 requires an equity injection of 10% of total project cost on a complete change of ownership. Up to half of it can be a seller note on full standby for the life of the loan, so the structure we see most is 5% cash from the buyer and 5% standby note from the seller. Some lenders ask for the full 10% in cash on weaker deals.
What interest rate does the calculator use?+
Prime, 7.00% since September 17, 2026, plus the spread you enter. The SBA caps variable rates on loans over $350,000 at prime plus 3%. Most acquisition loans we see price between prime plus 2% and prime plus 3%, so 2.75% is the default.
What is the guarantee fee?+
A one-time fee SBA charges on the guaranteed portion of the loan (75% on loans over $150,000). For FY2027 it is 2% on loans up to $150,000, 3% from $150,001 to $700,000, and 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% above that. Lenders can finance it into the loan, which is what the calculator assumes.
What coverage ratio do lenders require?+
The SOP sets a 1.15x floor on historical cash flow, and nearly every lender underwrites to 1.25x: cash flow after your salary divided by annual debt service. Projections do not count. If the business does not clear it on the last tax return, the price has to come down or the equity has to go up.
Does the standby seller note count in the payment?+
Not while it is on full standby. Interest accrues and the note is paid after the SBA loan, so lenders exclude it from debt service and count it as equity. A note that takes payments during the SBA term is debt, counts against coverage, and does not count toward the injection.
Is this a loan approval?+
No. It is an estimate on standard terms. Lenders also weigh your experience, credit, outside income, post-close liquidity, and the independent valuation every acquisition now requires. We walk Acquisition Launch clients through real lender conversations.