$350K SBA Loan: Monthly Payment and Costs
At 9.75%, a $350,000 SBA 7(a) loan is about $4,577 a month over 10 years, the usual term for buying a business, or $3,119 a month over 25 years with real estate.
Monthly payment on $350,000
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 4.50%, or 11.50% today (the maximum rate rules).
| Term | At 9.75% | At the 11.50% cap |
|---|---|---|
| 10 years | $4,577 | $4,921 |
| 25 years | $3,119 | $3,558 |
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) | $7,875 |
| Other closing costs (estimate) | $22,875 |
| Total | $30,750 |
Both are usually financed into the loan. The fee is set by SBA and applies to the guaranteed portion (how the guaranty fee works; some businesses pay no upfront fee in FY2027, see the FY2027 fee waiver). 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 $54,924 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 $68,654 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 $350,000 loan at 90% of the project means a project of about $388,889 and $38,889 from you (the down payment rules).
Where the balance goes, year by year
| 10-year loan | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | $21,754 | $33,170 | $328,246 |
| Year 2 | $23,972 | $30,952 | $304,274 |
| Year 3 | $26,417 | $28,507 | $277,858 |
| Year 4 | $29,110 | $25,813 | $248,748 |
| Year 5 | $32,079 | $22,844 | $216,669 |
| Year 6 | $35,350 | $19,573 | $181,318 |
| Year 7 | $38,955 | $15,968 | $142,363 |
| Year 8 | $42,928 | $11,996 | $99,435 |
| Year 9 | $47,305 | $7,618 | $52,130 |
| Year 10 | $52,130 | $2,794 | $0 |
Assumes the rate holds. Most SBA loans are variable and can adjust with Prime.
Questions
What is the monthly payment on a $350K SBA loan?
About $4,577 a month over 10 years at 9.75% (Prime 7.00% plus 2.75%), or $3,119 over 25 years. At the SBA maximum of 11.50% for this loan size, it is $4,921 over 10 years.
What does a $350K SBA loan cost upfront?
The FY2027 standard SBA guaranty fee is $7,875, and other closing costs are roughly $22,875 as an estimate. Both are usually financed into the loan.
How much income do I need for a $350K SBA loan?
The 10-year payments total about $54,924 a year. Lenders commonly look for 1.25 times that in cash flow available for debt service, about $68,654 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?