SBA loan basics
Short answer
The SBA guarantees 85% for loans up to $150,000 and 75% for loans exceeding $150,000. However, the maximum guaranteed amount is $3.75 million for loans up to $5 million.
The SBA's guaranty percentage depends on the loan amount. For smaller loans (up to $150,000), the guaranty is 85%. For larger loans (over $150,000 up to $5 million), the guaranty is 75%. This tiered structure encourages lenders to make smaller loans to a wider range of businesses.
A borrower secures a $100,000 SBA 7(a) loan; the SBA guarantees $85,000 (85%). If another borrower gets a $1,000,000 loan, the SBA guarantees $750,000 (75%).
Insider move
Lenders must correctly calculate and track the guaranteed portion, as this directly impacts their risk exposure. They also ensure the loan adheres to all SBA guidelines to maintain the validity of the guaranty.
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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