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SBA Fees Explained 

To offset the costs of its loan programs to the taxpayer, SBA charges a guaranty fee and a servicing fee for each loan approved and disbursed. The amount of the fees is based on the portion of the loan guaranteed by the SBA. The lender may charge the upfront guaranty fee to the borrower only after the lender has paid the fee to SBA and has made the first disbursement of the loan to you (the borrower). The lender’s annual service fee to SBA cannot be charged to the borrower.

For loans approved on or after December 8, 2004, the following fee structure applies:

1. For loans of $150,000 or less, a 2.0 percent guaranty fee will be charged. Lenders are again permitted to retain 0.25 percent of the up-front guaranty fee on loans with a gross amount of
$150,000 or less.

2. For loans more than $150,000 but up to and including $700,000, a 3 percent guaranty fee will be charged.

3. For loans greater than $700,000, a 3.5 percent guaranty fee will be charged.

4. For loans greater than $1,000,000, an additional 0.25 percent guaranty fee will be charged for that portion greater than $1,000,000. The portion of $1,000,000 or less would be charged a 3.5 percent guaranty fee; the portion greater than $1,000,000 would be charged at 3.75 percent.

NOTE: The American Recovery and Reinvestment Act signed into law February 17, 2009, authorized the temporary elimination of the borrower upfront guaranty fee on 7(a) loans having a maturity of longer than 12 months, through the end of March 2010, or until the funds appropriated for this provision are exhausted, whichever comes first.

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