The SBA charges a fee for guaranteeing part of a 7(a) loan. The lender pays it and may charge it to you. It is figured on the guaranteed portion, not the full loan amount.
Federal law caps the fee on loans longer than 1 year: 2% of the guaranteed portion on loans of $150,000 or less, 3% on loans over $150,000 up to $700,000, and 3.5% on larger loans, plus 0.25% on any guaranteed portion above $1 million. The SBA sets the actual fee each fiscal year, and it can be lower than the cap.
Example: A $500,000 7(a) loan with a 75% guarantee has a $375,000 guaranteed portion. At the 3% cap, the fee would be $11,250.
Ask the lender for the fee in dollars under the schedule that applies when your loan closes. The SBA's fiscal year starts on October 1, and the fee schedule can change with it.
Sources
- 15 U.S. Code § 636. Additional powers (subsections (a)(2) and (a)(18)) — Legal Information Institute, Cornell Law School (checked 2026-09-30)
- Terms, conditions, and eligibility (7(a) loan program) — U.S. Small Business Administration (checked 2026-09-30)