SBA Resources
SBA Loan Calculator
Estimate your monthly payments and understand your debt service.
TH
Written by Thomas Hartwell, SBA lending specialist and author of the FUNDED series.
Payment Calculator
Current SBA 7(a) rates: Prime + 2.25% to 2.75%
Understanding DSCR
Lenders use Debt Service Coverage Ratio (DSCR) to evaluate if your business can afford the loan payments.
DSCR = Net Operating Income / Annual Debt Service
Most SBA lenders require a minimum DSCR of 1.20x to 1.25x. This means your business needs to generate 20-25% more cash flow than your debt payments.
Example
- Annual debt service: $120,000
- Required DSCR: 1.25x
- Minimum NOI needed: $150,000
Current SBA Interest Rates
| Program | Rate Structure | Typical Range |
|---|---|---|
| SBA 7(a) | Variable (Prime + spread) | Prime + 2.25% to 2.75% |
| SBA 504 (Bank) | Negotiated with bank | Varies by lender |
| SBA 504 (CDC) | Fixed (tied to Treasury) | ~6% (as of Jan 2026) |
* Rates change based on Prime Rate and market conditions. Current Prime Rate is approximately 7.5%.
Get Industry-Specific Guidance
The FUNDED series provides detailed financing guidance for restaurants, hotels, and franchises.
Browse the FUNDED Series