SBA 7(a) Q&A
Short answer
Buyers should expect to pay various closing costs and fees, including the SBA upfront guaranty fee, lender packaging fees, legal fees, appraisal costs, and environmental report fees.
In addition to the principal amount, buyers incur costs to process and close the loan. The SBA charges an upfront guaranty fee (a percentage of the guaranteed portion of the loan, ranging from 0% to 3.5%). Lenders may charge packaging fees, and third-party costs include business valuations, real estate appraisals, environmental assessments, title insurance, and legal fees. These are often financed into the loan.
For a $1,000,000 SBA loan (75% guaranteed), the buyer might pay an upfront SBA guaranty fee of $26,250 (3.5% of $750,000). Additionally, there could be a lender fee of $5,000, a business valuation of $5,000, and legal fees of $3,000.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Fees Effective During Fiscal Year 2026
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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