{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-is-the-purpose-of-the-sba-guaranty-fee-on-my-loan","api_url":"https://dealroom.so/api/public/questions/what-is-the-purpose-of-the-sba-guaranty-fee-on-my-loan","question":"What is the purpose of the SBA guaranty fee on my loan?","topic":"Loan rates & fees","audience":"new","bot_mode":"buyer","short_answer":"The SBA guaranty fee is an upfront cost paid by the borrower that helps cover the administrative costs of the SBA's loan program and partially funds the guaranty itself.","rule":"This fee is calculated as a percentage of the guaranteed portion of the loan and is paid to the SBA by the lender, who then typically passes the cost on to the borrower. It's a one-time fee due at loan closing, with the percentage varying based on the loan amount.","example":"For a $1,000,000 SBA 7(a) loan with a 75% guaranty, the SBA guaranty fee would be calculated on the $750,000 guaranteed portion. If the fee is 2.5%, the borrower would pay $18,750.","what_lenders_check":"Lenders must correctly calculate and collect the SBA guaranty fee from the borrower and remit it to the SBA. Errors can lead to issues with the guaranty later.","required_facts":["Upfront fee","Administrative costs","Guaranteed portion","Percentage calculation"],"source_families":["7(a) Fees Effective During Fiscal Year 2026","SOP 50 10 - Lender and Development Company Loan Programs","SBA 7(a) Loan Guaranty Fee Calculator","13 CFR Part 120 - Business Loans"],"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":"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"},{"title":"SBA 7(a) Loan Guaranty Fee Calculator","url":"https://www.sba.gov/document/support-sba-7a-loan-guaranty-fee-calculator"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"What is the 'Prime Rate' when talking about SBA 7(a) loan rates?","url":"https://dealroom.so/sba-loans/basics/what-is-the-prime-rate-when-talking-about-sba-7-a-loan-rates"},{"question":"What is the typical range for the variable interest rate on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-range-for-the-variable-interest-rate-on-an-sba-7-a-loan"},{"question":"Are there any annual or ongoing fees for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/are-there-any-annual-or-ongoing-fees-for-an-sba-7-a-loan"}],"related_terms":[{"term":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-guaranty"},{"term":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"},{"term":"SBA guaranty fee","url":"https://dealroom.so/glossary/sba-guaranty-fee"},{"term":"Claim on the SBA Guarantee","url":"https://dealroom.so/glossary/claim-on-the-sba-guarantee"},{"term":"SBA Loan Guaranty","url":"https://dealroom.so/glossary/sba-loan-guaranty"},{"term":"Denial of the Guaranty","url":"https://dealroom.so/glossary/denial-of-the-guaranty"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/what-is-the-purpose-of-the-sba-guaranty-fee-on-my-loan","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."]}