SBA guaranty fees, explained in plain English.
An SBA 7(a) guaranty fee is based on the portion of your loan SBA guarantees. The full loan amount determines the fee tier. Your approval year, term, program, and any waiver also matter.
Calculate my feeAlso called the “SBA guarantee fee” or “upfront SBA fee,” this is a charge SBA assesses to the lender. A lender may pass the upfront fee to the borrower. It is separate from interest, appraisal fees, packaging fees, and other closing costs.
FY2027 SBA 7(a) guaranty fee schedule
For SBA approvals from October 1, 2026 through September 30, 2027, the following base rates apply to the supported programs before any eligible waiver. A closing date alone does not select the fiscal year.
| Loan term | Total loan amount | Upfront fee on the guaranteed portion |
|---|---|---|
| 12 months or less | Any supported amount | 0.25% |
| More than 12 months | $150,000 or less | 2% |
| More than 12 months | $150,001–$700,000 | 3% |
| More than 12 months | Over $700,000 | 3.5% on the first $1 million guaranteed, plus 3.75% on the guaranteed portion above $1 million |
The last row uses guaranteed dollars to split the 3.5% and 3.75% portions. A $1 million total loan does not automatically have $1 million guaranteed. These are whole-dollar loan bands. Source: FY2027 fee notice, pages 1–2.
How much of the loan does SBA guarantee?
| Program | Maximum loan | Guaranty for one standalone loan |
|---|---|---|
| Standard / Small 7(a) | $5 million for Standard; $350,000 for Small | 85% at $150,000 or less; 75% above $150,000 |
| SBA Express | $500,000 | 50% |
| Export Express | $500,000 | 90% at $350,000 or less; 75% above $350,000 |
The guided calculator uses Standard / Small 7(a), which share the same standalone fee formula. Express programs are shown here for reference only. Your lender determines the appropriate delivery method. Additional SBA loans can change the available guaranty.
Three examples you can check
Each example assumes FY2027 approval, one Standard 7(a) loan, a term greater than 12 months, and no exemption.
- $500,000 loan: 75% guaranteed = $375,000. The 3% upfront fee is $11,250.
- $1 million loan: 75% guaranteed = $750,000. The 3.5% upfront fee is $26,250.
- $2 million loan: 75% guaranteed = $1.5 million. The fee is $35,000 on the first $1 million guaranteed, plus $18,750 on the remaining $500,000, for $53,750.
Who can receive a $0 upfront fee in FY2027?
For eligible loans of $700,000 or less, the FY2027 notice waives the upfront fee for qualifying manufacturers, specified food-supply-chain businesses, and businesses located in qualifying rural areas. The business and loan must satisfy the actual SBA eligibility conditions. A loan just above the limit does not keep the waiver on its first $700,000.
- Manufacturing: the business’s primary NAICS classification is in sector 31, 32, or 33.
- Rural businesses: the current SOP defines a rural area as a county the U.S. Census Bureau classifies as at least 30% rural. Have the lender confirm eligibility; a mailing address or a USDA rural designation alone is not the test used here.
- Food supply chain: the business must match one of the eligible NAICS categories below. Merely selling food is not sufficient.
Eligible food-supply-chain NAICS categories
Families: 1111, 1112, 1113, 1121, 1122, 1123, 1124, 1125, 1129, 1141, 1151, 1152, 4244, 4245. These include six-digit primary codes beginning with the listed family.
Exact six-digit codes: 423820, 424910, 445110, 484220, 484230, 493120, 493130.
Additional restriction for 484220 and 484230: the qualifying activities are limited to refrigerated or frozen trucking, farm products, grain products, and livestock. The calculator requires confirmation of that activity before applying this exemption.
SBA Express veteran exemption: both fiscal years also provide a $0 upfront fee for SBA Express loans to businesses owned and controlled by eligible veterans or qualifying spouses. The SOP includes detailed qualifying categories and ownership rules. This exemption does not automatically apply to Standard 7(a) or Export Express.
Sources: FY2027 fee notice, page 1 and footnote; SOP 50 10 8.1, veteran eligibility and Appendix 3.
What changed from FY2026?
FY2026 covers approvals October 1, 2025 through September 30, 2026. Its standalone base rates are the same, but its manufacturing exemption applies through $950,000 and explicitly excludes MARC loans. The FY2027 manufacturing limit is $700,000, and FY2027 adds the specified food-supply-chain and rural-business waivers. Use the correct approval year; do not apply a current waiver retroactively.
For example, an otherwise qualifying manufacturer with a $950,000 Standard 7(a) loan has a $0 upfront fee under FY2026 rules. Under FY2027 rules, that same standalone loan with a term over 12 months has a $24,937.50 upfront fee. Sources: FY2026 notice and FY2027 notice.
Does this calculator finance the fee?
No. The estimated loan equals the project costs you enter less your down payment. The upfront guaranty fee is shown separately and is not added to the loan. The lender can discuss any fee financing and other closing costs with you.
What if another SBA loan was approved within 90 days?
Approvals for the applicant and its affiliates may need to be combined, even across different lenders. The subsequent fee may equal the combined fee less fees already paid or due. Prior guarantees can also reduce the new loan’s guaranty percentage.
For example, the SOP describes a $140,000 loan with an $119,000 guaranty, followed by a $50,000 loan. Keeping the combined guaranty at 75% of $190,000 leaves only $23,500 guaranteed on the second loan, or 47%. A standalone 75% assumption would be wrong. The calculator therefore asks about other approvals and does not issue a standalone estimate when you select “Yes.”
Is there also an annual fee?
SBA’s FY2027 lender annual service fee is 0.55% of the outstanding guaranteed principal. It is paid by the lender and cannot be passed to the borrower. This calculator excludes it from the borrower’s upfront fee. Source: FY2027 fee notice, page 1.
What this calculator covers
The guided calculator covers a standalone Standard / Small 7(a) loan under the current verified FY2027 fee schedule. Historical fee schedules and Express programs are reference information in this guide. It does not calculate 504 or microloan costs, WCP or EWCP fees, International Trade or MARC loans, loan increases, renewals, or related-loan aggregates. It estimates a fee; it does not determine loan eligibility, an approved term, or total borrowing cost.
Official sources
- SBA Information Notice 5000-881797: FY2027 7(a) Program Fees. Effective October 1, 2026. Upfront rates and waivers: pages 1–2. Food-supply-chain codes and limited trucking activities: page 1 and footnote.
- SBA Information Notice 5000-872051: FY2026 7(a) Fees. Effective October 1, 2025. Standard fee rates, manufacturing waiver, and special programs.
- SBA SOP 50 10 8.1, with technical updates. Effective October 1, 2026. Guaranty percentages, loan terms, fee financing, 90-day aggregation, veteran-owned SBA Express eligibility, and Appendix 3 rural definition.
- SBA: Types of 7(a) loans. Program limits and guaranty percentages.