{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-is-the-upfront-sba-guaranty-fee-calculated-for-a-7-a-loan-greater-than-1-000-000","api_url":"https://dealroom.so/api/public/questions/how-is-the-upfront-sba-guaranty-fee-calculated-for-a-7-a-loan-greater-than-1-000-000","question":"How is the upfront SBA guaranty fee calculated for a 7(a) loan greater than $1,000,000?","topic":"Guaranty fees","audience":"lender","bot_mode":"lender","short_answer":"For loans over $1,000,000, the upfront guaranty fee is calculated as a tiered percentage: a lower rate on the first $1,000,000 and a higher rate on the amount exceeding $1,000,000.","rule":"The SBA uses a tiered fee structure for its upfront guaranty fee, which is subject to change annually. For larger loans, the fee is a specific percentage (e.g., 2.5% on the first $1,000,000 of the guaranteed portion, and 3.0% or 3.5% on the guaranteed portion exceeding $1,000,000, depending on the current fiscal year's schedule). The total fee is then capped at a maximum. These rates are published in annual notices.","example":"For a $2,000,000 7(a) loan with an 85% guaranty, the guaranteed portion is $1,700,000. If the fee is 2.5% on the first $1M and 3.0% on the amount over $1M, the fee would be ($1,000,000 * 0.025) + ($700,000 * 0.030) = $25,000 + $21,000 = $46,000.","what_lenders_check":"Lenders must use the correct, current fee schedule published by the SBA for the applicable fiscal year. Miscalculating the fee can lead to undercollection from the borrower or an issue with the SBA.","required_facts":["Guaranty fee","Upfront fee","Tiered calculation","Loan amount","Fiscal year"],"source_families":["SBA 7(a) Loan Guaranty Fee Calculator","7(a) Fees Effective During Fiscal Year 2026","SOP 50 10 - Lender and Development Company Loan Programs"],"official_sources":[{"title":"SBA 7(a) Loan Guaranty Fee Calculator","url":"https://www.sba.gov/document/support-sba-7a-loan-guaranty-fee-calculator"},{"title":"7(a) Fees Effective During Fiscal Year 2026","url":"https://www.sba.gov/sites/default/files/2025-08/Info%20Notice%20-%207%28a%29%20Fees%20FY%202026%20%28FINAL%208-28-25%29.pdf"},{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"}],"related_questions":[{"question":"How is the upfront guaranty fee calculated for a 7(a) loan of $500,000 for FY2026?","url":"https://dealroom.so/for-lenders/questions/how-is-the-upfront-guaranty-fee-calculated-for-a-7-a-loan-of-500-000-for-fy2026"},{"question":"What is the process for a lender to remit the SBA upfront guaranty fee after loan closing?","url":"https://dealroom.so/for-lenders/questions/what-is-the-process-for-a-lender-to-remit-the-sba-upfront-guaranty-fee-after-loan-closing"},{"question":"How does the SBA calculate the 7(a) loan guaranty fee when the loan amount is precisely $1,000,000 for FY2026?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-calculate-the-7-a-loan-guaranty-fee-when-the-loan-amount-is-precisely-1-0"},{"question":"When is the ongoing SBA servicing fee (annual service fee) for a 7(a) loan typically collected from the lender?","url":"https://dealroom.so/for-lenders/questions/when-is-the-ongoing-sba-servicing-fee-annual-service-fee-for-a-7-a-loan-typically-collecte"},{"question":"How do the upfront SBA guaranty fees differ for 7(a) loans between $150,001 and $700,000 for FY2026?","url":"https://dealroom.so/for-lenders/questions/how-do-the-upfront-sba-guaranty-fees-differ-for-7-a-loans-between-150-001-and-700-000-for-"},{"question":"How do the ongoing annual service fees for 7(a) loans impact the lender's accounting and remittance to SBA?","url":"https://dealroom.so/for-lenders/questions/how-do-the-ongoing-annual-service-fees-for-7-a-loans-impact-the-lender-s-accounting-and-re"}],"related_terms":[{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA Upfront Guaranty Fee","url":"https://dealroom.so/glossary/sba-upfront-guaranty-fee"},{"term":"Upfront Guaranty Fee","url":"https://dealroom.so/glossary/upfront-guaranty-fee"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/how-is-the-upfront-sba-guaranty-fee-calculated-for-a-7-a-loan-greater-than-1-000-000","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}