SBA loan basics
Short answer
The primary fee is an upfront SBA guaranty fee, paid to the SBA, which varies based on the loan amount and guaranteed portion. Lenders also charge an annual service fee.
The SBA charges an upfront guaranty fee that borrowers pay, typically rolled into the loan. This fee helps cover the cost of the program. Lenders also charge an ongoing annual service fee to the SBA, which is typically passed on to the borrower.
For a $1,000,000 loan with an 85% guarantee, the upfront fee might be around 3.5% of the guaranteed portion, or $29,750 (0.035 * 0.85 * $1,000,000). The annual service fee is a smaller percentage of the outstanding guaranteed balance.
Insider move
Lenders ensure all fees are properly calculated, disclosed to the borrower, and comply with SBA regulations. They also factor these fees into the overall cost of the loan for the borrower.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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