SBA Guarantee Fees — 2026 Schedule
Complete breakdown of SBA 7(a) and 504 loan guarantee fees for fiscal year 2026, including upfront fees, annual service fees, and calculation examples.
SBA loans include government guarantee fees that help fund the SBA's loan programs. These fees are in addition to interest and other lender charges. Understanding the fee structure helps you budget accurately for the true cost of SBA financing.
The following fee schedule applies to SBA loans approved between October 1, 2025 and September 30, 2026 (Fiscal Year 2026).
SBA 7(a) Upfront Guarantee Fee
The upfront guarantee fee is a one-time charge calculated as a percentage of the SBA-guaranteed portion of your loan. This fee is typically financed into the loan rather than paid in cash at closing.
| Loan Amount | Loan Maturity | Upfront Fee Rate |
|---|---|---|
| $150,000 or less | 12 months or less | 0.25% |
| $150,000 or less | Over 12 months | 2.00% |
| $150,001-$700,000 | Over 12 months | 3.00% |
| $700,001-$1,000,000 | Over 12 months | 3.50% |
| Over $1,000,000 | Over 12 months | 3.50% up to $1M + 3.75% above $1M |
Guarantee Fee Calculation Examples
Understanding how fees are calculated helps you estimate your true costs:
Example 1: $250,000 Loan
- Loan amount: $250,000
- Guaranteed portion: 75% = $187,500
- Fee rate: 3.00% (loan is $150,001-$700,000)
- Upfront fee: $187,500 × 3.00% = $5,625
Example 2: $1,500,000 Loan
- Loan amount: $1,500,000
- Guaranteed portion: 75% = $1,125,000
- Fee on first $1,000,000 guaranteed: $1,000,000 × 3.50% = $35,000
- Fee on amount over $1,000,000: $125,000 × 3.75% = $4,688
- Total upfront fee: $35,000 + $4,688 = $39,688
Example 3: $100,000 Loan
- Loan amount: $100,000
- Guaranteed portion: 85% = $85,000 (higher guarantee for loans under $150K)
- Fee rate: 2.00% (loan is $150,000 or less, over 12 months)
- Upfront fee: $85,000 × 2.00% = $1,700
Lender Retention
For loans of $150,000 or less, the lender may retain up to 25% of the upfront guarantee fee. This portion may reduce what you pay or be negotiable.
Annual Service Fee (Ongoing Fee)
In addition to the upfront fee, SBA 7(a) loans carry an annual service fee paid over the life of the loan. This fee is typically included in your monthly payment.
| Fee Type | FY 2026 Rate | Calculation Basis |
|---|---|---|
| Annual Service Fee | 0.55% (55 basis points) | Outstanding guaranteed balance |
Example: On a $500,000 loan with $375,000 guaranteed (75%), the annual service fee in year one would be approximately $375,000 × 0.55% = $2,063. As you pay down the loan, this fee decreases since it is based on the outstanding balance.
SBA 504 Loan Fees
SBA 504 loans have a different fee structure since they involve both a bank and a CDC (Certified Development Company):
| Fee Type | FY 2026 Rate | Who Pays |
|---|---|---|
| CDC Processing Fee | 1.50% of CDC loan amount | Borrower |
| SBA Guarantee Fee | 0.50% of CDC loan amount | Borrower |
| Funding Fee | 0.25% of CDC loan amount | Borrower |
| Annual Service Fee | 0.209% of outstanding CDC balance | Borrower (may be passed through) |
Who Pays the Guarantee Fees?
Technically, the lender pays the upfront guarantee fee to the SBA. However, lenders pass this cost to borrowers in one of two ways:
- Financed into the loan — Most common approach. The fee is added to your loan amount, so you pay it over time with interest.
- Paid at closing — Less common. You pay the full fee in cash, reducing your total loan amount and interest costs.
The annual service fee is typically built into your monthly payment by the lender. You may not see it itemized separately.
Negotiating Fees
While SBA guarantee fees are set by the government and non-negotiable, lender fees (origination, closing costs) can often be negotiated. Ask about total closing costs when comparing lender offers.
Special Fee Waivers for FY 2026
The SBA has implemented fee waivers for certain borrowers in fiscal year 2026:
- Small Manufacturers (7(a)) — Upfront guarantee fee waived for manufacturing loans up to $950,000.
- Manufacturers (504) — Both upfront fee and annual service fee waived for all 504 manufacturing loans.
- Veteran-Owned Businesses — Guarantee fees may be waived on SBA Express loans for eligible veterans.
To qualify for manufacturing fee waivers, your business must have a NAICS code in the 31-33 manufacturing sectors. Ask your lender if your business qualifies.
Total Cost Impact
Understanding the full fee impact helps you compare SBA loans to alternatives:
| Loan Amount | Upfront Fee | Year 1 Service Fee | Total Year 1 Fees |
|---|---|---|---|
| $150,000 | $2,550 (2% × $127,500) | $701 (0.55% × $127,500) | $3,251 |
| $350,000 | $7,875 (3% × $262,500) | $1,444 (0.55% × $262,500) | $9,319 |
| $750,000 | $19,688 (3.5% × $562,500) | $3,094 (0.55% × $562,500) | $22,782 |
| $1,500,000 | $39,688 (blended) | $6,188 (0.55% × $1,125,000) | $45,876 |
While these fees add to your borrowing cost, SBA loans typically still offer significantly lower total cost than conventional or online alternatives — especially for longer-term financing needs.
Use the SBA's official guaranty fee calculator at sba.gov to calculate exact fees for your specific loan scenario. The calculator accounts for all fee tiers and guarantee percentages.
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Read more →Important Disclosure
Not Financial Advice: The information provided in this article is for general informational purposes only and does not constitute financial, legal, or professional advice. You should consult with qualified professionals before making any financial decisions.
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