SBA 7(a) Loan Calculator
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SBA 7(a) prime+2.75% = ~10.25% (May 2026)
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At 1.25× DSCR · SBA 7(a) cap $5M
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Build your full Loan Package →SBA Loan Questions — Answered
The most common questions trade business owners ask before applying.
What DSCR do I need for an SBA 7(a) loan?
SBA lenders require a minimum DSCR (Debt Service Coverage Ratio) of 1.25×. This means your annual EBITDA must be at least 1.25 times your total annual debt service — all loan payments combined. A DSCR below 1.25× is the #1 reason SBA 7(a) applications are declined. Some lenders will go to 1.15× with compensating factors (strong collateral, long business history), but 1.25× is the standard.
What is the current SBA 7(a) interest rate for trade businesses?
SBA 7(a) rates are variable, tied to the prime rate plus a lender spread of 2.25%–2.75%. As of May 2026, with prime at 7.5%, SBA 7(a) rates for trade businesses run approximately 9.75%–10.25%. Loans over $350K often qualify for the lower end of the spread. Fixed-rate options exist at a slight premium — ask your lender.
What loan terms does SBA 7(a) offer for trade businesses?
SBA 7(a) terms depend on use of proceeds: working capital and equipment (up to 10 years), real estate (up to 25 years). Most trade business expansions use 10-year terms. Business acquisitions often use 10 years for goodwill/equipment and 25 years for real estate — sometimes structured as a single blended loan.
What owner add-backs can I use to improve my DSCR?
SBA lenders allow add-backs to EBITDA that normalize owner-specific expenses: (1) Owner compensation above market rate — typically $85K–$100K/yr depending on trade; (2) Vehicle depreciation and personal vehicle expenses run through the business; (3) One-time non-recurring expenses like legal settlements or equipment write-offs; (4) Officer life insurance premiums paid by the business; (5) Non-cash depreciation and amortization. Add-backs directly increase your adjusted EBITDA, which improves your DSCR. Work with a CPA to document these properly — lenders want to see the tax return support.
What is the maximum SBA 7(a) loan amount?
The SBA 7(a) maximum is $5 million. Most trade business loans range from $150K to $2M for equipment and working capital. Business acquisitions and commercial real estate can approach the $5M cap. Loans above $350K require an SBA guarantee fee of 3.5% of the guaranteed portion — factor this into your total cost.
How long does SBA 7(a) loan approval take?
SBA 7(a) approval typically takes 60–90 days from application to funding. Preferred Lender Program (PLP) banks can approve in 30–45 days because they have delegated authority without SBA review. Express loans (up to $500K) target a 36-hour turnaround for approval — though funding still takes 30–60 days. The biggest delays come from incomplete documentation. A complete financial package (2 years tax returns, YTD P&L, balance sheet, 3-year projections) cuts weeks off the process.