SBA loan basics
Short answer
The maximum percentage the SBA will guarantee on a 7(a) loan is typically 85% for loans up to $150,000 and 75% for loans over $150,000.
The SBA establishes these guarantee percentages to balance risk sharing with lenders and encourage participation in the program. Higher percentages for smaller loans reflect a greater incentive for lenders to support very small businesses.
A business gets a $100,000 loan, and the SBA guarantees 85% ($85,000). Another business gets a $500,000 loan, and the SBA guarantees 75% ($375,000).
Insider move
Lenders understand that they still bear the unguaranteed portion of the loan risk (15% or 25%). This means they still conduct thorough underwriting, as they are on the hook for a significant amount if the loan defaults.
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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