Commercial · Calculator
SBA 504 Loan Calculator
An SBA 504 loan calculator that runs 7(a) too — the two programs fit different deals. Payment, cash-flow-supported max loan, down payment, and guarantee fees, with a clear 504-vs-7(a) recommendation based on your scenario.
Loan Request
Cash Flow
Earnings before interest, tax, depreciation, amortization.
Existing P&I across all current business loans.
Property
SBA requires owner-occupancy of 51% existing, 60% new construction.
Borrower
Recommendation
SBA 504 recommended
SBA 504 typically beats 7(a) on owner-occupied real estate — long-term fixed rate on the CDC portion (40%) is hard to beat.
Cash Flow Test
Down Payment
Estimated Costs
Program Eligibility
Frequently asked
About this calculator.
How is an SBA 504 loan payment calculated?
An SBA 504 deal is actually two loans plus your equity: a bank first mortgage for roughly 50% of the project cost, a CDC debenture (the SBA-backed portion) for roughly 40% at a long-term fixed rate, and a 10% borrower equity injection. Your total monthly payment is the bank loan payment plus the debenture payment. The equity injection rises to 15% for a special-purpose property (hotel, restaurant, gas station) or a business under two years old — and 20% if both apply. This calculator sizes the total project against your cash flow (DSCR), computes the blended payment on your requested amount, and checks 504 eligibility.
What's the difference between SBA 7(a) and 504?
SBA 7(a) is the versatile program — up to $5M for working capital, business acquisitions, owner-occupied commercial real estate, equipment, and refinancing. SBA 504 is fixed-asset only (owner-occupied real estate or heavy equipment) with a 50/40/10 structure: 50% bank financing, 40% CDC-financed long-term fixed rate, 10% borrower equity. 504 wins on commercial real estate when the rate edge matters; 7(a) wins on flexibility.
What's the minimum down payment on an SBA loan?
Standard properties: 10%. Special-purpose properties (hotels, restaurants, gas stations, car washes, etc.): 15%. SBA 7(a) can sometimes go to 5–10% with a strong file; SBA 504 is firmly at 10% borrower equity injection by design.
What DSCR do SBA lenders require?
Minimum 1.15× based on EBITDA / total debt service (existing + new). Preferred 1.25×+. Sub-1.15× cases need compensating factors (large down payment, strong personal guarantor, escrow).
How long does an SBA loan take to close?
7(a) typically 30–60 days. 504 60–90 days because of the second-lender CDC structure. Working capital and equipment loans can close faster — real estate is the slowest because of appraisal + environmental + title.
What are the SBA guarantee fees?
On a 7(a) loan, the guarantee fee is a one-time fee paid to SBA for guaranteeing the lender against default. It is tiered by loan size and charged on the guaranteed portion (up to 75% of the loan, capped at $3.75M guaranteed) — historically ranging from 0% on the smallest loans up to roughly 3.75% on the largest tiers. SBA resets the exact fee schedule every fiscal year by official notice, and in some years fees on smaller loans are reduced to zero, so treat any specific percentage as the statutory ceiling rather than your quote. On a 504, the CDC debenture carries its own funding, CDC, and servicing fees financed into the debenture. This calculator estimates the fee from the standard tier structure; your lender quote is the number that governs.
What credit score and eligibility do you need for an SBA loan?
SBA itself sets no statutory minimum personal credit score — eligibility requires a for-profit U.S. business within SBA size standards, owner-occupancy of at least 51% for real estate (60% on new construction for 504), and repayment ability. In practice, lenders drive the credit box: most SBA preferred lenders want a 680+ personal FICO, and files below roughly 640 are difficult without strong compensating factors. Smaller 7(a) loans are also pre-screened through SBA's SBSS small-business credit score. Cash flow matters more than score — a 1.15× minimum DSCR (1.25×+ preferred) on EBITDA versus total debt service is the gate this calculator checks.
Owner-occupied CRE deals
SBA is usually the right answer.
Below-market long-term fixed rate, low down payment, no balloon. We have direct relationships with the top SBA preferred lenders nationally. Send the deal — we\u2019ll tell you 7(a) vs 504 in twenty minutes.
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