$1M SBA Loan: Monthly Payment and Costs
At 9.75%, a $1,000,000 SBA 7(a) loan is about $13,077 a month over 10 years, the usual term for buying a business, or $8,911 a month over 25 years with real estate.
Monthly payment on $1,000,000
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 | $13,077 | $13,215 |
| 25 years | $8,911 | $9,087 |
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) | $26,250 |
| Other closing costs (estimate) | $40,439 |
| Total | $66,689 |
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 $156,924 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 $196,155 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 $1,000,000 loan at 90% of the project means a project of about $1,111,111 and $111,111 from you (the down payment rules).
Where the balance goes, year by year
| 10-year loan | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | $62,153 | $94,771 | $937,847 |
| Year 2 | $68,491 | $88,433 | $869,356 |
| Year 3 | $75,476 | $81,448 | $793,880 |
| Year 4 | $83,173 | $73,752 | $710,707 |
| Year 5 | $91,654 | $65,270 | $619,053 |
| Year 6 | $101,001 | $55,923 | $518,052 |
| Year 7 | $111,301 | $45,623 | $406,751 |
| Year 8 | $122,651 | $34,273 | $284,100 |
| Year 9 | $135,159 | $21,766 | $148,942 |
| Year 10 | $148,942 | $7,983 | $0 |
Assumes the rate holds. Most SBA loans are variable and can adjust with Prime.
Questions
What is the monthly payment on a $1M SBA loan?
About $13,077 a month over 10 years at 9.75% (Prime 7.00% plus 2.75%), or $8,911 over 25 years. At the SBA maximum of 10.00% for this loan size, it is $13,215 over 10 years.
What does a $1M SBA loan cost upfront?
The FY2027 standard SBA guaranty fee is $26,250, and other closing costs are roughly $40,439 as an estimate. Both are usually financed into the loan.
How much income do I need for a $1M SBA loan?
The 10-year payments total about $156,924 a year. Lenders commonly look for 1.25 times that in cash flow available for debt service, about $196,155 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?