SBA loan basics
Short answer
The primary upfront fee a borrower pays for an SBA 7(a) loan is the SBA guaranty fee, which is a percentage of the guaranteed portion of the loan.
The SBA guaranty fee is paid by the borrower to the SBA through the lender at the time of loan closing. The fee amount varies based on the guaranteed portion of the loan and its size, as set annually by the SBA. For example, for loans over $1,000,000, the fee can be 3.50% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000.
For a $1.5 million SBA 7(a) loan with a 75% guarantee ($1,125,000 guaranteed portion), the borrower would pay an upfront guaranty fee. For the first $1 million of the guaranteed portion, it's $35,000 (3.5%). For the remaining $125,000, it's $4,687.50 (3.75%). Total fee: $39,687.50.
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 2026-06-14. 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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