Glossary · The loan itself
In short
A one-time SBA fee, charged on the guaranteed part of the loan — roughly 2–3.5% depending on size. Usually rolled into the loan.
The SBA charges lenders a guaranty fee as compensation for backing the loan, and lenders pass it to borrowers. On a $1M loan at 75% guaranty, the fee typically runs $18,750–$26,250 and gets tacked onto the loan balance rather than paid at closing. The good news is that it doesn't come out of your equity injection — the fee rolls in on top. Budget for it in your total project costs and ask your lender what the exact figure will be before you sign the LOI.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-14 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day