SBA loan basics
Short answer
Yes, borrowers typically pay an upfront guaranty fee to the SBA and may also pay an annual servicing fee, both of which are calculated based on the guaranteed portion of the loan.
The upfront guaranty fee is paid by the borrower (often financed into the loan) to the SBA for providing the guaranty. Its amount depends on the loan size and the guaranteed percentage. An annual service fee, also paid to the SBA, is usually collected by the lender monthly or quarterly.
For a $1 million loan with a 75% SBA guaranty, the borrower might pay an upfront guaranty fee of around 3.5% of the guaranteed amount ($750,000), which is $26,250. This is in addition to the interest payments.
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
SBA 7(a) Loan Guaranty Fee Calculator
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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