{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-is-the-upfront-sba-guaranty-fee-calculated-for-a-7-a-loan-with-a-principal-amount-exce","api_url":"https://dealroom.so/api/public/questions/how-is-the-upfront-sba-guaranty-fee-calculated-for-a-7-a-loan-with-a-principal-amount-exce","question":"How is the upfront SBA guaranty fee calculated for a 7(a) loan with a principal amount exceeding $1,000,000?","topic":"Guaranty Fees","audience":"lender","bot_mode":"lender","short_answer":"For 7(a) loans exceeding $1,000,000, the upfront guaranty fee is a tiered calculation: 3.5% on the guaranteed portion up to $1,000,000, plus 3.75% on the guaranteed portion exceeding $1,000,000.","rule":"The SBA uses a tiered fee structure. For larger loans, the fee is not a flat percentage of the total guaranteed amount. The first tier of the guaranteed portion (up to $1,000,000) has one rate, and any guaranteed amount above that has a slightly higher rate. This calculation applies to the guaranteed portion, not the total loan amount.","example":"A $2,000,000 7(a) loan with an 85% SBA guaranty ($1,700,000 guaranteed). The fee would be (3.5% of $1,000,000) + (3.75% of the remaining $700,000 guaranteed portion) = $35,000 + $26,250 = $61,250.","what_lenders_check":"Lenders must accurately calculate the tiered guaranty fee based on the guaranteed portion of the loan, not the total loan amount. Miscalculation can lead to under-collection from the borrower or under-remittance to the SBA, creating compliance issues.","required_facts":["Upfront guaranty fee","Tiered calculation","Guaranteed portion","Loan amount exceeding $1M","Fee schedule"],"source_families":["7(a) Fees Effective During Fiscal Year 2026","SBA 7(a) Loan Guaranty Fee Calculator","SOP 50 10 - Lender and Development Company Loan Programs"],"official_sources":[{"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":"SBA 7(a) Loan Guaranty Fee Calculator","url":"https://www.sba.gov/document/support-sba-7a-loan-guaranty-fee-calculator"},{"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 does a lender ensure compliance with the '90-day rule' for guaranty fee payment for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-compliance-with-the-90-day-rule-for-guaranty-fee-payment-for-a-7-"},{"question":"When are the annual service fees for 7(a) loans due from lenders to the SBA?","url":"https://dealroom.so/for-lenders/questions/when-are-the-annual-service-fees-for-7-a-loans-due-from-lenders-to-the-sba"},{"question":"What is the prepayment penalty calculation for a 7(a) loan with a principal balance exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/what-is-the-prepayment-penalty-calculation-for-a-7-a-loan-with-a-principal-balance-exceedi"},{"question":"When is the upfront SBA guaranty fee typically due and how is it calculated for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-the-upfront-sba-guaranty-fee-typically-due-and-how-is-it-calculated-for-a-7-a-loan"},{"question":"Are there any ongoing annual fees that a lender must pay to the SBA for their 7(a) loan portfolio?","url":"https://dealroom.so/for-lenders/questions/are-there-any-ongoing-annual-fees-that-a-lender-must-pay-to-the-sba-for-their-7-a-loan-por"},{"question":"How does a lender calculate the ongoing servicing fee (annual service fee) due to the SBA for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-calculate-the-ongoing-servicing-fee-annual-service-fee-due-to-the-sba-fo"}],"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-with-a-principal-amount-exce","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."]}