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SBA Microloan Calculator

SBA microloans support small or new businesses — high-touch nonprofit lender.

$
%

Monthly payment

$531

Total interest

$6,871

Total repayment

$31,871

How the math works

Standard amortization formula at microloan rate.

$25k 10% 5y = $531/mo. Total $31,861. Interest $6,861.

How to Use

  1. Enter loan amount.
  2. Enter rate %.
  3. Enter term years.
  4. Read monthly payment.

Frequently Asked Questions

SBA microloan rules?

Max: $50,000. Avg: $13,000. Rate: 8–13% (set by intermediary lender). Term: up to 6 years. Use: working capital, inventory, supplies, furniture, fixtures, equipment. NOT real estate, debt refi. Lenders: nonprofit intermediaries (CDFI, community lenders). Often pair loan with technical assistance + business training. Best for: startups, women-owned, minority-owned, low-income, rural businesses underserved by traditional bank lending. Application: simpler than 7(a) but still needs financials, business plan.

How does this fit small business finance?

Small business owners use this calculator alongside cash flow forecast, P&L, balance sheet, and tax projection. Pair with industry benchmark data (RMA, BizMiner, IBISWorld). Decision framework: ROI > capital cost + risk premium > minimum threshold for owner time. Single calculator output is one input — owner intuition + market knowledge + financial discipline complete the picture.

SBA financing fit?

SBA 7(a): up to $5M, working capital, equipment, real estate, business acquisition, longer terms. SBA 504: real estate + equipment, fixed rate, 10–25 years. SBA Express: up to $500k, faster. SBA Microloan: up to $50k. Owner-occupied real estate (51%+ owner use) qualifies. Personal guarantee required. SBA fees: 2–3.75% of guaranteed portion.

When is this worth pursuing?

Small business decisions weighing capex, hiring, expansion, financing should consider: ROI threshold (typically 20%+ for owner risk), payback period (under 3 years preferred), cash flow coverage, opportunity cost vs alternatives. Calculator outputs inform but don't decide — owner judgment about market, competition, and execution capacity is what makes the call.

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