Loan Payment / SBA Calculator for Home Services

SBA loans are one of the best financing tools available to home services businesses, offering lower down payments (10 to 20%) and longer repayment terms (7 to 25 years) than conventional commercial loans. The most common uses in home services are equipment financing for trucks and tools (SBA 7(a) loans for $50,000 to $350,000), purchasing an existing plumbing or HVAC company (SBA 7(a) for acquisition), working capital lines to cover seasonal cash flow gaps, and real estate for shop or warehouse space (SBA 504 loans). Current SBA 7(a) rates run prime plus 1.5 to 2.75%, which at today's prime rate puts effective rates at 8 to 11%. A $150,000 SBA loan for a new service truck, equipment, and initial inventory at 9.5% over 10 years runs about $1,940/month. The SBA's key requirement is that you demonstrate the ability to repay from business cash flow, typically a debt service coverage ratio (DSCR) of 1.25x or higher. That means for every $1 in loan payments, your business needs to generate $1.25 in net operating income. This calculator lets you model different loan amounts, rates, and terms so you can see exactly what your monthly payment will be and whether your current revenue supports it.