Free tool

SBA loan sizing calculator

Enter the cash you can put in. The calculator applies the SBA rules in force from October 1, 2026 and tells you the biggest purchase price that cash supports, what the loan and payments look like, and how much profit the business needs for a bank to say yes.

Start with the cash you can put in. Under the SBA rules in force from October 1, 2026, the bank needs at least 10% of the price from you. A seller note on full standby can cover up to half of that.

Loan assumptions
Biggest purchase price your cash supports$0
  • Bank loan$0
  • Your cash in$0
  • Seller standby note–
  • Monthly loan payment$0
  • Yearly loan payments$0
  • Yearly profit the business needs to clear 1.25x$0

These are planning numbers. On the call we look at your real situation and tell you honestly whether this is your next move.

Book a free 15-minute call

Planning tool, not a loan offer. Rules reflect SBA SOP 50 10 8.1 for a first-time acquisition (10% buyer cash, standby seller note up to half, 1.25x coverage on historical profit, $5M maximum loan, 10-year amortization). Every lender adds its own requirements, closing costs and working capital change the numbers, and no financing is promised or arranged by us.

Banks check one number first: does the business's profit cover the loan payments with room to spare? From October 1, 2026 the bar for a first-time buyer is 1.25x, measured on the seller's actual numbers, not projections.

Loan assumptions
Coverage ratio (DSCR)0.00x
  • Profit after your salary$0
  • Bank loan$0
  • Yearly bank payments$0
  • Yearly seller payments–
  • Total yearly payments$0
  • Max price this profit supports at 1.25x$0

Have a real deal in front of you? Bring it to the call and we will take it apart with you.

Book a free 15-minute call

Planning tool, not a loan offer. Rules reflect SBA SOP 50 10 8.1 for a first-time acquisition (10% buyer cash, standby seller note up to half, 1.25x coverage on historical profit, $5M maximum loan, 10-year amortization). Every lender adds its own requirements, closing costs and working capital change the numbers, and no financing is promised or arranged by us.

The 20-second answer

For a first-time acquisition, the bank needs at least 10% of the total price from you, and from October 1, 2026 that 10% cannot be reduced. So the biggest business your cash supports is roughly your cash times ten. If the seller agrees to carry part of the price on full standby (no payments while the bank loan is outstanding), that note can cover up to half of your 10%, and your cash stretches to roughly twenty times.

What the rules say

RuleOctober 1, 2026 (SOP 50 10 8.1)
Your cash inAt least 10% of the total project cost. Cannot be reduced for a first-time buyer.
Seller note on standbyCounts toward your 10%, up to half of it. Must stay on full standby for 36 months before it can be refinanced.
Coverage barProfit must cover loan payments 1.25 times over, on historical numbers, not projections.
Maximum SBA loan$5,000,000
Loan term10 years for a business purchase. Up to 25 for the real estate portion.
Interest rateVariable, capped at Prime + 3% for loans over $250,000. WSJ Prime is 7.00% as of September 2026, so the cap is 10.00%. This tool plans at 9.75% (Prime plus 2.75%).

Why we calculate profit needed, not just the payment

Most SBA calculators stop at the monthly payment. That number is only useful if the business can pay it. Banks require the business's yearly profit, after paying you a market salary, to cover all loan payments 1.25 times over. So we show you the profit a business needs to clear that bar at the price your cash supports. When you look at listings, that is the number to compare against the seller's real tax returns.

What this calculator does not include

  • Closing costs, working capital and the SBA guaranty fee, which raise the total project cost and therefore your 10%.
  • Lender-specific requirements. Many banks ask for more than the SBA minimum on larger or riskier deals.
  • Real estate. If the building is part of the deal, the term and the structure change.
Bring your numbers to the free 15-minute call. We will tell you honestly whether the purchase price you have in mind is realistic with the cash you have. Book a Call →

Straight answers

Does the 10% have to be my own cash?
At least half of it does. A seller note on full standby can cover the other half. Gifts and some investor equity can count too, with documentation. Borrowed money that you have to repay generally does not.
What counts as "standby"?
The seller agrees to receive no payments at all on that note while the bank loan is outstanding, and the note stays in place for at least 36 months before it can be refinanced. Interest can accrue. A seller note with regular payments does not count toward your 10%.
Why 9.75%?
SBA 7(a) rates are variable and capped by loan size. For loans over $250,000 the cap is Prime plus 3%. WSJ Prime is 7.00% as of September 2026, so the cap is 10.00% and the planning rate is 9.75% (Prime plus 2.75%). Many lenders price below the cap. Change it in the loan assumptions.