Loan amount
What does a $5 million business loan actually cost?
Monthly payment on a $5 million business loan at current rates, the cash flow you need to qualify, and what the SBA's own data shows about loans this size.
A $5 million business loan runs about $46,319 a month over 25 years at 10.25%, the median SBA 7(a) rate. To carry it comfortably a lender wants roughly $694,787 a year in cash flow available for debt service. Loans this size were 2.3% of recent SBA 7(a) approvals.
Monthly payment on a $5 million business loan
The payment depends on the rate and, far more than most borrowers expect, on the term.
| Rate | 10-year | 15-year | 20-year | 25-year |
|---|---|---|---|---|
| 8.25% | $61,326 | $48,507 | $42,603 | $39,423 |
| 10.25% (median) | $66,770 | $54,498 | $49,082 | $46,319 |
| 12.25% | $72,460 | $60,815 | $55,928 | $53,587 |
| 15.25% | $81,435 | $70,837 | $66,765 | $65,013 |
Two things worth noticing. Doubling the term does not halve the payment — it cuts it by much less, because interest accrues for longer. And the rate matters less than the term at every size on this page. Run your own figures, including fees taken from proceeds, with the payment calculator.
What you need to qualify for $5 million
Hard, and slow. At this size the lender is underwriting a business, not a borrower. Expect audited or reviewed financials, deep diligence on customer concentration and management depth, a personal guarantee from every 20% owner, and 60 to 120 days.
| Requirement | What lenders look for at this size |
|---|---|
| Cash flow available for debt | About $694,787 a year, to hit 1.25x coverage on this payment alone |
| Annual revenue | No fixed rule, but $3,000,000 is a common informal floor for a request this size |
| Personal credit | 680+ opens most doors; 640-679 narrows them |
| Time in business | Two filed tax returns is the common threshold |
| Injection | None for working capital; 10% for an acquisition or property |
| Collateral | Liens on business assets; personal real estate above $500,000 |
What $5 million loans actually look like
Rather than illustrate, here is what the SBA's loan-level release shows for approvals in this size range. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Loans around $5 million | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 4,870 | 214,102 |
| Share of all 7(a) approvals | 2.3% | 100% |
| Median loan in the band | $4,500,000 | $150,000 |
| Median term | 25 years | 10 years |
| Median initial rate | 9.00% | 10.25% |
| Share to startups | 31.0% | 33.6% |
| Charge-off rate, FY2010-19 | 3.0% | 7.1% |
Which lenders write loans this size
Matching your request to a lender's typical size is one of the most underrated moves in this process. Approaching a lender whose book is mostly $2 million deals with a $5 million request usually goes nowhere slowly.
| Lender | Loans in this size range |
|---|---|
| Live Oak Banking Company | 667 |
| GBank | 194 |
| First Internet Bank of Indiana | 140 |
| The Huntington National Bank | 132 |
| Celtic Bank Corporation | 119 |
| Readycap Lending, LLC | 116 |
| Byline Bank | 90 |
| Newtek Bank | 90 |
| First Bank of the Lake | 86 |
| US Metro Bank | 80 |
Your realistic options at $5 million
| Product | Fit at this size | Typical cost |
|---|---|---|
| SBA 7(a) | Up to the $5M program cap | 10.0% - 14.0% APR |
| SBA 504 | No hard project cap | 6.0% - 7.5% effective, fixed |
| Bank or conventional term loan | Fully competitive here | 9% to 14% APR |
| Commercial mortgage | If property | 6.5% - 9.5% APR |
| Business acquisition loan | If buying a business | 10.0% - 14.0% APR |
How to get the best version of this loan
- Check coverage before you ask. Run $5 million through the affordability calculator. If it does not clear 1.25x, ask for less or for a longer term.
- Get two written offers. Nothing else moves pricing as reliably.
- Ask what fee comes out of proceeds. A 3% origination fee on $5 million is $150,000 that never reaches your account, while you repay on the full amount.
- Match the term to what you are buying. Long money for a short-lived need is waste; short money for a long-lived asset strangles cash flow.
- Assemble the documents first. See the document checklist.
Questions people actually ask
What is the monthly payment on a $5 million business loan?
About $46,319 a month over 25 years at 10.25%, the median initial rate on recently approved SBA 7(a) loans. Over a shorter term the payment rises sharply -- the table above shows the full range.
How much revenue do I need for a $5 million loan?
There is no fixed rule, because lenders underwrite cash flow rather than revenue. What matters is roughly $694,787 a year of cash flow available for debt service, which is what produces 1.25x coverage on this payment. A business with thin margins needs far more revenue than one with healthy margins to reach the same number.
How hard is it to get a $5 million business loan?
Hard, and slow. At this size the lender is underwriting a business, not a borrower. Expect audited or reviewed financials, deep diligence on customer concentration and management depth, a personal guarantee from every 20% owner, and 60 to 120 days.
Do lenders treat $5 million loans as riskier?
The data says the opposite of what people assume: charge-off rates fall as loans get larger. Loans in this band from the FY2010-2019 cohorts charged off at 3.0%, against 7.1% across all 7(a) loans. Larger borrowers tend to be more established, which is also why they price better.