SBA 7(a) Q&A
Short answer
Yes, lenders can charge reasonable and customary application, underwriting, or packaging fees in addition to the SBA guaranty fee, but these fees are subject to certain maximum limits set by the SBA.
While the SBA charges a guaranty fee, lenders are permitted to charge their own reasonable fees for processing and underwriting the loan, distinct from the SBA's fee. These fees must be customary for similar non-SBA loans and are subject to maximum caps. For example, for loans over $50,000, these fees are generally capped at 3% of the loan amount for loans up to $1,000,000 and 2% for loans over $1,000,000, plus an additional 0.25% for loans over $50,000 involving real estate.
For a $750,000 SBA 7(a) loan, the lender may charge an application or packaging fee up to 3% of the loan amount, which is $22,500. This is in addition to the SBA's upfront guaranty fee.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
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