SBA rules · SOP 50 10 8.1
How much is the SBA guaranty fee?
Under SBA Information Notice 5000-881797 for FY 2027, the 7(a) upfront guaranty fee ranges from 0% to 3.75% of the guaranteed portion depending on loan size, maturity, industry, and program type, while 504 debentures require a 0.5% fee.
Quoted from SBA SOP 50 10 8.1Every quote checked word for word
In detail
- Loans exceeding 12 months: For gross loans up to $150,000, the fee is 2% of the guaranteed portion (lenders may retain up to 25%); for $150,001 to $700,000, it is 3%; and for $700,001 to $5,000,000, it is 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% of the portion exceeding $1,000,000 (FY 2027 7(a) Program Fees, Upfront Fees).
- Short-term loans: For loans with a maturity of 12 months or less, the upfront fee is 0.25% of the guaranteed portion (FY 2027 7(a) Program Fees, Upfront Fees).
- Zero-fee exceptions: The upfront fee is 0% for loans of $700,000 or less made to manufacturers, qualifying food supply chain businesses, and rural businesses, as well as for veteran-owned SBA Express loans (FY 2027 7(a) Program Fees, SBA Guaranty Fee (Upfront Fee)).
- EWCP and WCP loans: Upfront fees are based on maturity: 0.25% for 12 months or less, 0.525% for 13 to 24 months, 0.80% for 25 to 36 months, and for WCP loans, 1.075% for 37 to 48 months and 1.35% for 49 to 60 months (FY 2027 7(a) Program Fees, Upfront Fee for EWCP loans).
- 504 debentures: For 504 projects, the upfront SBA guaranty fee is a one-time fee calculated in the pricing model at 0.5% of the Net Debenture proceeds.
The source
What the SOP says
“• For loans of $150,000 or less: 2% of the guaranteed portion of the loan. The Lender may retain no more than 25% of the fee (i.e., at least 1.5% must be remitted to SBA). • For loans of $150,001 to $700,000: 3% of the guaranteed portion of the loan. • For loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion of the loan up to and including $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000. For loans with a maturity of 12 months or less (Short-term loans): 0.25% of the guaranteed portion of the loan.
“For loans of $700,000 or less, to manufacturers (NAICS sectors 31-33), food supply chain (NAICS Codes 1111, 1112, 1113, 1121, 1122, 1123, 1124, 1125, 1129, 1141, 1151, 1152, 423820, 4244, 4245, 424910, 445110, 4842201, 484230, 493120, 493130), and businesses that are located in a rural area, the Upfront fee is 0%.
“For all SBA Express loans made to businesses owned and controlled by a veteran or spouse of a veteran, the Upfront Fee will be $0 in accordance with section 7(a)(31)(G) of the Small Business Act (15 U.S.C. § 636(a)(31)(G)).
“• For 7(a) WCP loans with a maturity of 12 months or less: the upfront guaranty fee is 0.25% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 13 up to 24 months: the Upfront Fee is 0.525% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 25 up to 36 months: the Upfront Fee is 0.80% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 37 up to 48 months: the Upfront Fee is 1.075% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 49 up to 60 months: the Upfront Fee is 1.35% of the guaranteed portion of the loan.
“multiply $350,000 by 0.005 =
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This page quotes the SBA's Standard Operating Procedure 50 10 8.1. Lenders can ask for more than the SBA minimum. It is general information, not a loan approval or legal advice.