SBA loan basics
Short answer
The SBA's maximum guarantee percentage for a 7(a) loan is typically 85% for loans up to $150,000 and 75% for loans greater than $150,000. However, the exact percentage can vary by specific loan programs or circumstances.
The SBA's standard guarantee on a 7(a) loan is 85% for loans of $150,000 or less, and 75% for loans exceeding $150,000, up to the maximum loan amount of $5 million. This percentage is fixed at the time the loan is approved and serves to reduce the risk for the participating lender, encouraging them to make the loan.
For a $100,000 loan, the SBA would guarantee 85%, meaning the bank is only at risk for $15,000 if the borrower defaults. For a $1,000,000 loan, the guarantee would be 75%, exposing the bank to $250,000 of risk.
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
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
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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