Free tool for acquisition buyers

SBA Loan Calculator for Buying a Business

Estimate what an SBA-financed acquisition could cost, how much cash you'll need, and the price the business may support. Includes FY2027 guaranty fees, seller financing, and downside scenarios. Based on SOP 50 10 8.1.

SBA policy assumptions current as of October 31, 2026. Prime rate is refreshed separately from Federal Reserve data.

Your deal

The business

Purchase price

Cash flow basis

Seller's discretionary earnings (SDE)Last full year or 2-yr average

Your market salarySubtracted from SDE: lenders underwrite on cash flow after paying an operator

Project costs

Working capital financed

Closing costsLegal, QoE, valuation, packaging

Appraised real estate includedOwner-occupied; included in purchase price. Used for QoE threshold estimate.

Equity & seller financing

Your cash injection% of total project cost

Seller note on full standby% of project. No payments for life of SBA loan. Counts toward equity (max half)

Seller note, paying% of purchase price. Counts as debt in DSCR

Seller note rate / term

SBA loan terms

Prime rateChecking Federal Reserve…

Lender spreadTypical acquisition: +2.25% to +2.75%

Business term

Finance the SBA guaranty fee into the loan Manufacturer, food supply chain, or rural business (0% fee on loans ≤ $700K)

Real estate, if any, amortizes over 25 years as a blended loan; everything else over the business term.

SBA 7(a) loan

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Monthly SBA payment

–

Modeled DSCR

–

SBA minimum 1.25x

Estimated cash to close

–

PURCHASE PRICE CAPACITYBased on your cash flow

–

At 1.25x DSCR SBA minimum

–

At 1.50x DSCR More conservative

Uses your current cash flow, equity, and financing assumptions. Not a lender valuation or approval.

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Debt service coverage

1.00x1.25x SBA floor1.50x2.00x+

Cash flow (EBITDA basis)	–
SBA debt service / yr	–
Seller note debt service / yr	–
Cash left after debt service	–

Owner salary + surplus after debt service	–
Blended SBA rate	–

Max price holds your structure (cash %, seller note %, working capital, closing costs) constant and solves for price.

Sources & uses

Uses	$

Sources	$

Stress test

DSCR if things go worse than the seller's numbers.

Cash flow	Rate as-is	Rate +2%

Financing checks

Scenario links include your entered deal inputs.

Smarter acquisition math, once a week.

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How this SBA loan calculator works

Most SBA loan calculators stop at a monthly payment. Lenders don't. They start with total project costs, check the equity injection, include the guaranty fee, and evaluate cash flow against debt service. This calculator models those key steps; actual underwriting also involves valuation, cash-flow adjustments, and lender-specific requirements.

1. Total project cost, not purchase price

Total project cost includes the purchase price, working capital, closing costs, and the SBA guaranty fee. On a $2.5 million purchase with $150,000 of working capital and 3% closing costs, the base project is $2.725 million before the guaranty fee. In this calculator's default structure, the fee is about $60,989, bringing total project costs to roughly $2,785,989 and the modeled 10% equity requirement to about $278,599—not $250,000. The amount changes with your funding structure. For more on what counts, see our guide to SBA down payment and equity injection rules.

2. The guaranty fee is charged on the guaranteed portion

SBA guarantees 85% of loans up to $150,000 and 75% of larger loans (capped at a $3.75 million guaranty). The upfront fee applies to that guaranteed portion. When you finance the fee, it increases the loan, which slightly increases the fee; the calculator solves for that loop the way lenders do.

Loan amount (FY2027, maturity over 12 months)	Upfront guaranty fee
$150,000 or less	2% of guaranteed portion
$150,001 to $700,000	3% of guaranteed portion
$700,001 to $5,000,000	3.5% of guaranteed portion up to $1M, plus 3.75% above $1M
≤ $700,000: manufacturers, food supply chain, rural	0%

Source: SBA Information Notice 5000-881797, effective for loans receiving an SBA loan number on or after October 1, 2026.

3. Rate: Prime plus a capped spread

Most acquisition loans are variable. SBA caps the spread by loan size: Prime + 6.5% up to $50,000, + 6.0% to $250,000, + 4.5% to $350,000, and + 3.0% above $350,000. Most acquisition loans land well below the cap; ask lenders to quote the spread explicitly.

4. DSCR on historical EBITDA, after your salary

Under SOP 50 10 8.1, initial acquisitions need a debt service coverage ratio of at least 1.25x, measured on the last fiscal year or a two-year average. Projections don't count. Lenders start from SDE, subtract a market salary for the person running the business, and divide by all business debt service, including any seller note that's being paid. A seller note on full standby isn't counted, which is why standby notes are such a useful structuring tool. We break down the full calculation in Debt Service Coverage Ratio: The Number That Can Make or Break Your Deal.

5. Maximum purchase price

The maximum modeled purchase prices hold your cash-flow and financing assumptions constant and solve for 1.25x and 1.50x DSCR, subject to the $5 million SBA loan cap. An asking price above the 1.25x estimate fails this model under the current assumptions; a lender may analyze different cash flow or a different capital structure. Neither estimate establishes business value or loan approval.

SBA acquisition loan rules at a glance (SOP 50 10 8.1)

Rule	Requirement
Maximum 7(a) loan	$5,000,000
Equity injection, initial acquisition	10% of total project cost; not waivable
Seller note toward equity	Full standby for life of loan; max half of required injection
Minimum DSCR, initial acquisition	1.25x on historical cash flow
Term	10 years for the business; up to 25 years for real estate
Quality of earnings report	Generally required for business purchase prices of $3 million or more, excluding qualifying appraised owner-occupied real estate
Personal guarantee	Required from every owner of 20% or more

The personal guarantee is the part of an SBA deal no calculator captures. Read The SBA Personal Guarantee Requirements before you sign.

Frequently asked questions

How much do I need to put down for an SBA loan to buy a business?

For an initial change-of-ownership acquisition, SOP 50 10 8.1 requires an equity injection of at least 10% of total project cost (purchase price plus working capital, closing costs, and the SBA guaranty fee), not 10% of the purchase price. A seller note on full standby for the life of the SBA loan can cover up to half of that 10%; the rest must be the buyer's own cash or qualifying equity.

What DSCR do I need for an SBA acquisition loan?

Under SOP 50 10 8.1 (effective October 1, 2026), initial acquisitions require a minimum debt service coverage ratio of 1.25x, measured on historical cash flow (EBITDA after a market salary for the owner) against all business debt service, including any seller note that is not on full standby. Many lenders prefer 1.35x to 1.50x or more.

How is the SBA guaranty fee calculated?

The upfront guaranty fee is charged on the SBA-guaranteed portion of the loan, not the full loan amount. For FY2027 loans with maturities over 12 months: 2% of the guaranteed portion up to $150,000; 3% for loans of $150,001 to $700,000; and 3.5% of the guaranteed portion up to $1 million plus 3.75% of the guaranteed portion above $1 million for loans of $700,001 to $5 million. The guaranty is 85% on loans up to $150,000 and 75% above that. Loans of $700,000 or less to manufacturers, food supply chain businesses, and rural businesses qualify for a 0% fee.

What interest rate will I pay on an SBA 7(a) acquisition loan?

Most acquisition loans are variable, priced at the Prime rate plus a spread. For loans over $350,000 the SBA caps the spread at Prime + 3.00%. Many acquisition loans price around Prime + 2.25% to 2.75%, depending on the lender and the deal.

How long is an SBA loan to buy a business?

The business acquisition portion is typically amortized over 10 years. Real estate purchased with the business can be amortized over up to 25 years, either as a blended loan or a separate loan.

Can a seller note count toward the SBA down payment?

Yes, but only if it is on full standby (no principal or interest payments) for the entire term of the SBA loan, and it can cover no more than half of the required 10% equity injection. A seller note that is being paid counts as debt in the DSCR calculation instead. See What Is a Seller Note?

This calculator is for educational purposes and estimates only. Owner salary and cash remaining are before taxes, replacement capex, reinvestment, and other obligations. Cash-to-close excludes lender-specific reserves and fees not entered as closing costs. It is not a loan offer, credit decision, or legal, tax, or financial advice. Lenders apply their own credit policies, add-back adjustments, collateral requirements, and global cash flow tests, and they may require more equity or coverage than SBA minimums. Variable rates change with Prime. Fee schedule: SBA Information Notice 5000-881797 (FY2027). Rate caps: SBA Procedural Notice 5000-875051. Equity, DSCR, term, and QoE rules: SOP 50 10 8.1, effective October 1, 2026. Confirm all terms with your lender and SBA counsel.

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