SBA 7(a) Q&A
Short answer
The SBA charges an upfront guaranty fee and an ongoing service fee to the lender, but these are typically passed through to the borrower as part of the loan costs.
The SBA does not directly invoice the borrower for fees. Instead, the lender pays these fees to the SBA. However, the lender is permitted to pass these costs onto the borrower, usually by financing them within the loan amount or collecting them at closing.
For a $1,000,000 loan, the lender pays an upfront guaranty fee (e.g., 3.5%) and an annual service fee (e.g., 0.55%) to the SBA. The lender then recovers these costs from the borrower as part of the loan structure.
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
7(a) Fees Effective During Fiscal Year 2026
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.
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