FY2027 SBA 7(a) upfront fee schedule
| Loan amount | SBA guaranty | Upfront fee |
|---|---|---|
| $150,000 or less | 85% | 2% of the guaranteed portion |
| $150,001 to $700,000 | 75% | 3% of the guaranteed portion |
| $700,001 to $5,000,000 | 75% | 3.50% of the guaranteed portion up to $1 million, plus 3.75% above $1 million |
| Maturity of 12 months or less | as above | 0.25% of the guaranteed portion |
| Manufacturers, specified food supply-chain businesses, rural businesses (loans ≤ $700,000) | as above | 0% |
upfront fee = guaranteed portion × fee rate for the loan's size
Fees by loan size
| Loan | Guaranteed portion | Upfront fee | Fee as % of loan |
|---|---|---|---|
| $100,000 | $85,000 | $1,700 | 1.70% |
| $150,000 | $127,500 | $2,550 | 1.70% |
| $350,000 | $262,500 | $7,875 | 2.25% |
| $700,000 | $525,000 | $15,750 | 2.25% |
| $1,000,000 | $750,000 | $26,250 | 2.63% |
| $2,000,000 | $1,500,000 | $53,750 | 2.69% |
| $5,000,000 | $3,750,000 | $138,125 | 2.76% |
Because the rate steps up at $150,000 and $700,000, a loan just over a threshold can cost noticeably more in fees than one just under it. If you're close to a boundary, it's worth checking both amounts.
Who pays, and when
SBA charges the upfront fee to the lender when the loan is approved, and the lender usually passes it to the borrower, who can generally pay it from the loan proceeds. The annual service fee is different: the lender pays 0.55% a year on the outstanding guaranteed balance and can't charge it to the borrower. When two or more 7(a) loans are approved for the same borrower within 90 days, SBA treats them as one loan when setting the fee.
Frequently asked questions
How is the SBA 7(a) guaranty fee calculated?
It is a percentage of the guaranteed portion of the loan, not the full loan. SBA guarantees 85% of loans up to $150,000 and 75% of larger loans, and the fee rate depends on the loan amount.
Who pays the SBA guaranty fee?
SBA charges it to the lender, which usually passes it on to the borrower. It can generally be paid from the loan proceeds.
Which loans have no upfront fee?
For fiscal year 2027, 7(a) loans of $700,000 or less to manufacturers, specified food supply-chain businesses and businesses in rural areas have a 0% upfront fee. The lender confirms eligibility through SBA's systems.
What about short-term 7(a) loans?
Loans with a maturity of 12 months or less carry a much smaller upfront fee: 0.25% of the guaranteed portion.
Is there an annual SBA fee as well?
Yes, the lender pays an annual service fee on the outstanding guaranteed balance, 0.55% for fiscal year 2027, and lenders can't pass it on to the borrower.
Sources
SBA 7(a) fees for fiscal year 2027 (Information Notice 5000-881797) and SBA 7(a) terms. The schedule changes every fiscal year on October 1; this page is checked every week against official SBA pages and was last confirmed 2026-09-29. Your lender's figures on the loan authorization are authoritative.