Standard SBA 7(a) Loan Guaranty Fee Calculator
When applying for a Small Business Administration (SBA) loan, it’s important to understand that the cost of borrowing includes more than just interest. SBA loans also come with guaranty fees—charges paid to the SBA in exchange for guaranteeing a portion of the loan, which reduces the lender’s risk. These fees vary depending on the loan amount and term length and are typically passed on to the borrower. Our SBA Loan Fee Calculator makes it easy to estimate these additional costs, helping borrowers get a clearer picture of their total loan expenses before committing.
SBA 7(a) Guaranty Fee Rules (FY 2025 Recap)
| Loan Amount | Fee % on Guaranteed Portion |
|---|---|
| ≤ $150,000 | 2.0% |
| $150,001 – $700,000 | 3.0% |
| $700,001 – $1,000,000 | 3.5% |
| $1,000,001 – $2,000,000 | 3.5% of first $1M + 3.75% over $1M |
Standard SBA 7(a) Upfront Loan Fees Examples
| Sample SBA Loan Amounts | Upfront Fee |
|---|---|
| $100,000 | $1,700 |
| $250,000 | $6,375 |
| $500,000 | $12,750 |
| $750,000 | $19,688 |
| $1,000,000 | $26,250 |
| $2,500,000 | $67,813 |
| $5,000,000 | $138,125 |
Lender’s Annual Service Fee
- The annual service fee for 7(a) loans, including 7(a) Working Capital Pilot (WCP) loans, will be 0.55% of the guaranteed portion of the outstanding balance.
- Lenders cannot pass this fee on to borrowers.
SBA Guaranty Fee (Upfront Fee)
- For loans exceeding 12 months:
- $150,000 or less: 2% of the guaranteed portion (Lenders can retain up to 25% of the fee, with at least 1.5% remitted to the SBA).
- $150,001 to $700,000: 3% of the guaranteed portion.
- $700,001 to $5,000,000: 3.5% on the first $1,000,000 of the guaranteed portion, plus 3.75% on amounts exceeding $1,000,000.
- For loans of 12 months or less: 0.25% of the guaranteed portion.
Multiple 7(a) Loans Within 90 Days
- When two or more 7(a) loans with maturities exceeding 12 months are approved within 90 days for the same borrower (or affiliates), they are treated as one loan for fee calculations.
- The Upfront Fee for subsequent loans is adjusted based on what would have been charged if the loans were combined.
- Lenders are not permitted to split loans to avoid fees.
Special Fee Considerations
Additional Upfront Fees for Loan Extensions
- If a short-term 7(a) loan is extended beyond 12 months, an additional Upfront Fee must be paid within 30 days or the SBA loan guaranty will be canceled.
SBA Express Loans for Veteran-Owned Businesses
- $0 Upfront Fee for all SBA Express loans made to businesses owned and controlled by veterans or their spouses.
Export Working Capital Program (EWCP) Loans
- Maturity of 12 months or less: 0.25% of the guaranteed portion.
- Maturity of 13–24 months: 0.525% of the guaranteed portion.
- Maturity of 25–36 months: 0.80% of the guaranteed portion.
SBA Guaranty Fees FAQs
1. What is the SBA upfront fee?
The SBA upfront fee, also known as a guarantee fee, is a fee charged by the SBA to guarantee a portion of the loan provided by an SBA-approved lender. This fee is typically passed on to the borrower.
2. Who pays the SBA upfront fee?
The borrower pays the SBA upfront fee. However, it can often be financed into the loan, so it doesn’t have to be paid out-of-pocket.
3. Can the SBA upfront fee be waived?
Yes, in certain cases. The SBA often waives fees for:
Veteran-owned businesses (under the Veterans Advantage Program)
Loans ≤ $1 million during specific SBA fee relief periods
(Always check current policy as it can change.)
4. Is the upfront fee tax deductible?
Yes, in many cases the SBA guarantee fee is considered a business expense and may be tax deductible. Always consult a tax professional for specifics.
5. What portion of the loan does the fee apply to?
The fee applies to the SBA-guaranteed portion of the loan, not the full loan amount. For example, if the SBA guarantees 75% of a $2 million loan, the fee is calculated only on the $1.5 million portion.
6. Are there other fees besides the upfront fee?
Yes. Borrowers may also pay:
Packaging fees
Closing costs
Legal or third-party fees
However, lenders are restricted by SBA guidelines on how much they can charge.
7. How is the upfront fee calculated?
It’s a percentage of the guaranteed portion of the loan, based on tiered brackets. The lender usually handles the calculation, but the SBA fee calculator above can help estimate it quickly.
8. When is the upfront fee due?
It is typically due at the time of loan disbursement. If financed into the loan, it’s added to the total loan amount.
9. Why does the SBA charge an upfront fee?
The fee helps offset the cost of the SBA loan guarantee program, making it self-sustaining without relying on taxpayer dollars.
10. Is the upfront fee different than the interest rate charged?
Yes. Learn more about SBA loan interest rates and visit our SBA loan payments calculator to estimate monthly SBA loan interest payments.