SBA loan basics
Short answer
Borrowers are typically required to pay an upfront guaranty fee directly to the SBA, which is calculated as a percentage of the guaranteed portion of the loan. There may also be lender closing fees.
The SBA charges an upfront guaranty fee that lenders pass on to borrowers. This fee varies based on the guaranteed amount and the loan's size, and it changes annually based on the fiscal year. For instance, for loans up to $1 million, the fee is a percentage of the guaranteed amount.
For a $500,000 loan with a 75% SBA guarantee ($375,000 guaranteed portion), the upfront fee might be 3.0% of the guaranteed portion, totaling $11,250. This fee is usually financed into the loan.
Insider move
Lenders must accurately calculate and collect the SBA guaranty fee and submit it to the SBA. They also clearly disclose any additional lender fees to the borrower, ensuring transparency and compliance.
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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