SBA Express Line of Credit Calculator

An SBA Express line of credit is a draw period followed by a term-out. Set a total maturity and a draw period below. If the combination is not allowed, the calculator names the rule it breaks.

The three rules

Three rules bind, and they interact. Total maturity may not exceed 10 years, and those 10 years include the term-out. No advances are permitted after the first 60 months, so the draw period stops at five years. A revolving line of more than 12 months must carry a term-out that is not shorter than the draw period, and no draws are permitted during it.

SBA's own example: an eight-year maturity may be a two-year draw with a six-year term-out. Flip it and it fails. The same eight-year maturity may not be a six-year draw with a two-year term-out.

A corner falls out of that arithmetic. Take the full five-year draw and the term-out has to run at least five years too, so the line has to go the full 10 years. Short lines work differently. A line of 12 months or less may be written with no term-out at all, and the balance is then due at maturity.

One quick note on a number you will see elsewhere: the seven-year line of credit ceiling belongs to Export Express, which is a different program with a different guaranty.

A worked example

So, for example, take a $250,000 line drawn in full at 10.5%, on an eight-year maturity with a two-year draw period. The draw-period payment, modeled as interest only, is:

$250,000 x 10.5% / 12 = $2,187.50 per month

The balance then amortizes over the six-year term-out at $4,694.74 a month, which is a step-up of $2,507.24 at month 25.