SBA loan basics
Short answer
Yes, borrowers typically pay an upfront guaranty fee to the SBA, which is a percentage of the guaranteed portion of the loan. This fee is often financed into the loan.
The SBA charges an upfront guaranty fee, which is a one-time fee paid by the borrower to the SBA for providing the guarantee to the lender. The fee amount is a percentage of the guaranteed portion of the loan and varies based on the loan size and term. For example, for loans over $1,000,000, it's typically around 3.5% of the guaranteed portion.
For a $1,000,000 loan with a 75% SBA guarantee ($750,000 guaranteed portion), the upfront guaranty fee would be calculated on the $750,000. If the rate is 3.5%, the fee would be $26,250.
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
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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