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SBA Loan Payment

Understanding how your SBA loan payment works is an important part of meeting your obligation as a borrower.  The payment is a combination of your amortization schedule, your interest rate, loan amount and what loan program you have or are considering (Go here to use our SBA loan Calculator).

SBA Loan Payment With 7a Loans

SBA 7a loans are almost always amortized over 25 years though some borrowers go with a 15 year amortization schedule (this is rare).  Interest rates are normally quarterly adjusting tied to either The Prime Rate or LIBOR.  So loan payments are calculated off of the current index plus the banks margin.  Loan amount and amortization schedule are also factored in to calculate the monthly payment.  

SBA Loan Payments With SBA 504 Loans 

Calculating the SBA 504 loanpayments are a little more complicated as there are two loans within this program that are set up by lien position.  The first lien position loan is the conventional bank loan that goes up to 50% loan to value.  Interest rates, fixed periods and amortization schedule span the market and simply depend on what you can secure.  5 year fixed with a 25 year amortization schedule is a common example.  Though fixed rates can be a long as 25 years (check out our 25 year fixed loan).

The second lien position loan referred to as a CDC loan, is almost always fixed and amortized over 20 years (it can be set up as a 10 year fixed loan).  This loan goes from 51% loan to value to 90% loan to value.  As far as calculating your SBA loan payment its best to calculate each loan separately than simply add them together to figure out your total monthly payment. 

Commercial Finance Advisors, Inc originates and closes SBA loans and commercial mortgages  throughout the nation with loan amounts from $400,000 to $13,000,000.  We have a broad specturam of loan programs and can work with virtually any situation, ie from the strongest borrowers to those that are struggling to secure financing.  Though we are not doing any type of start up financing and we require commercial real estate on all of our loans.   

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