For SBA lenders
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.
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.
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.
Insider move
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.
SBA 7(a) Loan Guaranty Fee Calculator
7(a) Fees Effective During Fiscal Year 2026
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on guaranty fees
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day