SBA loan basics
Short answer
Yes, borrowers typically pay an upfront guaranty fee to the SBA, as well as lender packaging fees and potential third-party closing costs such as appraisals or legal fees.
The SBA charges an upfront guaranty fee, calculated as a percentage of the guaranteed portion of the loan, which is usually financed into the loan. Lenders may also charge reasonable packaging fees, and borrowers are responsible for third-party costs like appraisals, environmental reports, and attorney fees at closing.
For a $500,000 loan with an 85% SBA guaranty, the upfront guaranty fee would be based on $425,000. Additionally, the borrower might pay a lender's packaging fee of $2,500 and $5,000 in legal and appraisal costs at closing.
Insider move
Lenders clearly disclose all fees to borrowers upfront, ensuring transparency and compliance with SBA regulations on fee structures. They ensure fees are reasonable and customary for the services provided.
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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