SBA loan basics
Short answer
Borrowers pay an upfront guaranty fee to the SBA, an ongoing annual service fee, and sometimes a packaging fee to the lender. These fees vary by loan amount and can often be financed.
The SBA requires two main fees: an upfront guaranty fee, calculated on the guaranteed portion of the loan (e.g., for loans over $1 million, it could be 3.5% of the guaranteed amount), and an annual service fee on the outstanding guaranteed balance. Lenders may also charge a reasonable loan packaging fee, which must be fully disclosed and justified.
For a $700,000 loan with a 75% SBA guaranty, the upfront fee would be calculated on $525,000. If the fee rate is 3%, the borrower would pay $15,750 to the SBA, typically financed into the loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
7(a) Fees Effective During Fiscal Year 2026
SOP 50 10 - Lender and Development Company Loan Programs
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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