$5M SBA Loan: Monthly Payment and Costs
At 9.75%, a $5,000,000 SBA 7(a) loan is about $65,385 a month over 10 years, the usual term for buying a business, or $44,557 a month over 25 years with real estate.
Monthly payment on $5,000,000
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 | $65,385 | $66,075 |
| 25 years | $44,557 | $45,435 |
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) | $138,125 |
| Other closing costs (estimate) | $168,000 |
| Total | $306,125 |
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 $784,621 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 $980,777 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 $5,000,000 loan at 90% of the project means a project of about $5,555,556 and $555,556 from you (the down payment rules).
Where the balance goes, year by year
| 10-year loan | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | $310,765 | $473,856 | $4,689,235 |
| Year 2 | $342,456 | $442,165 | $4,346,778 |
| Year 3 | $377,379 | $407,242 | $3,969,399 |
| Year 4 | $415,863 | $368,758 | $3,553,536 |
| Year 5 | $458,272 | $326,350 | $3,095,264 |
| Year 6 | $505,005 | $279,616 | $2,590,260 |
| Year 7 | $556,504 | $228,117 | $2,033,756 |
| Year 8 | $613,255 | $171,367 | $1,420,501 |
| Year 9 | $675,793 | $108,829 | $744,708 |
| Year 10 | $744,708 | $39,913 | $0 |
Assumes the rate holds. Most SBA loans are variable and can adjust with Prime.
Questions
What is the monthly payment on a $5M SBA loan?
About $65,385 a month over 10 years at 9.75% (Prime 7.00% plus 2.75%), or $44,557 over 25 years. At the SBA maximum of 10.00% for this loan size, it is $66,075 over 10 years.
What does a $5M SBA loan cost upfront?
The FY2027 standard SBA guaranty fee is $138,125, and other closing costs are roughly $168,000 as an estimate. Both are usually financed into the loan.
How much income do I need for a $5M SBA loan?
The 10-year payments total about $784,621 a year. Lenders commonly look for 1.25 times that in cash flow available for debt service, about $980,777 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?