$1.5M SBA Loan: Monthly Payment and Costs
At 9.75%, a $1,500,000 SBA 7(a) loan is about $19,616 a month over 10 years, the usual term for buying a business, or $13,367 a month over 25 years with real estate.
Monthly payment on $1,500,000
The estimate uses Prime (7.00%, as of September 17, 2026) plus 2.75%, which is where most SBA acquisition loans price. The SBA ceiling for a loan this size is Prime plus 3.00%, or 10.00% today (the maximum rate rules).
| Term | At 9.75% | At the 10.00% cap |
|---|---|---|
| 10 years | $19,616 | $19,823 |
| 25 years | $13,367 | $13,631 |
Ten years applies to a business purchase, working capital and most equipment; 25 years to real estate. A loan that mixes the two gets a blended term (SBA loan terms).
Upfront costs
| Cost | Amount |
|---|---|
| SBA guaranty fee (FY2027 standard) | $39,688 |
| Other closing costs (estimate) | $55,529 |
| Total | $95,217 |
Both are usually financed into the loan. The fee is set by SBA and applies to the guaranteed portion (how the guaranty fee works). The closing-cost figure is an estimate, not a quote, and real estate adds appraisal, environmental and title costs.
The cash flow a lender looks for
On the 10-year schedule the payments add up to $235,386 a year. Lenders commonly look for the business to earn at least 1.25 times its debt payments after the owner is paid, which here is about $294,233 a year of cash flow available for debt service.
If the loan buys a business, the SBA minimum down payment is 10% of the total project. A $1,500,000 loan at 90% of the project means a project of about $1,666,667 and $166,667 from you (the down payment rules).
Where the balance goes, year by year
| 10-year loan | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | $93,230 | $142,157 | $1,406,770 |
| Year 2 | $102,737 | $132,650 | $1,304,034 |
| Year 3 | $113,214 | $122,173 | $1,190,820 |
| Year 4 | $124,759 | $110,627 | $1,066,061 |
| Year 5 | $137,482 | $97,905 | $928,579 |
| Year 6 | $151,501 | $83,885 | $777,078 |
| Year 7 | $166,951 | $68,435 | $610,127 |
| Year 8 | $183,976 | $51,410 | $426,150 |
| Year 9 | $202,738 | $32,649 | $223,412 |
| Year 10 | $223,412 | $11,974 | $0 |
Assumes the rate holds. Most SBA loans are variable and can adjust with Prime.
Questions
What is the monthly payment on a $1.5M SBA loan?
About $19,616 a month over 10 years at 9.75% (Prime 7.00% plus 2.75%), or $13,367 over 25 years. At the SBA maximum of 10.00% for this loan size, it is $19,823 over 10 years.
What does a $1.5M SBA loan cost upfront?
The FY2027 standard SBA guaranty fee is $39,688, and other closing costs are roughly $55,529 as an estimate. Both are usually financed into the loan.
How much income do I need for a $1.5M SBA loan?
The 10-year payments total about $235,386 a year. Lenders commonly look for 1.25 times that in cash flow available for debt service, about $294,233 a year.
Estimates for planning, not a loan offer. Rates use Prime of 7.00% as of September 17, 2026. Your lender sets your actual rate, fees and terms.
Straight from the SBA's rulebook
The SBA rules behind these numbers
- Can a broker or consultant charge a fee on an SBA loan?
- How much is the SBA guaranty fee?
- Is the SBA guaranty fee waived in 2027?
- What are the fees on an SBA 504 loan?
- What fees can a lender charge on an SBA loan?
- Who pays the SBA annual service fee?
- Can an SBA loan be assumed by a buyer?
- Can an SBA loan be increased after approval?