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 usually rolled into the total loan amount.
The SBA charges an upfront guaranty fee to help cover the costs of the program. The fee percentage varies based on the loan amount and loan term, as set annually by the SBA. For example, for loans over $1,000,000, the fee is generally 3.50% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000.
For a $1,500,000 loan with an 85% SBA guaranty ($1,275,000 guaranteed portion), the upfront fee would be calculated on the guaranteed portion. This fee, say $45,000, would then be added to the loan amount, increasing it to $1,545,000.
Insider move
Lenders must accurately calculate the upfront guaranty fee according to the current fiscal year's schedule and ensure it is properly disclosed to the borrower. They typically collect this fee from loan proceeds at closing and remit it to the SBA.
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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