SBA loan fees 2026: guaranty fee table, annual fee and lender fees
Buying a business with a Small Business Administration (SBA) 7(a) loan carries an upfront fee, charged only on the part of the loan SBA guarantees. The maximum rate runs from 2% on small loans to 3.75% on the largest, and the lender may pass it to you. The tables below show the tiers and a $5,000,000 example.
Seller note standby terms and third-party consents are reviewed before closing.
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The upfront guaranty fee table
The SOP says the Upfront Fee "is based on the guaranteed portion of the loan and not the total loan amount," and it permits the lender "to pass the cost of the Upfront Fee to the Borrower." That means it can be financed. For maturities over 12 months the maximums are below; for a maturity of 12 months or less the fee is 0.25%.
| Loan size | Fee on the guaranteed portion |
|---|---|
| $150,000 or less | 2% (the lender keeps 25%) |
| Over $150,000, to $700,000 | 3% |
| Over $700,000 | 3.5% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000 |
These are maximums. SBA "may announce temporary changes for a specific fiscal year through an Information Notice," so the current-year schedule is on the 7(a) loan program page.
Source: SOP 50 10 8.1, Section A, Ch. 4, 7(a) Loan Program Fees; SBA Guaranty Fee (Upfront Fee); Calculation of the Upfront Fee; sba.gov 7(a) loan program
Worked maximum. A $5,000,000 loan with a 75% guaranty has a guaranteed portion of $3,750,000. The fee is 3.5% of the first $1,000,000 ($35,000) plus 3.75% of the remaining $2,750,000 ($103,125), which "totals $138,125."
Source: SOP 50 10 8.1, Section A, Ch. 4, Calculation of the Upfront Fee; Appendix 16, General Requirements
Who pays the fee and when it is due
The lender may pass the cost to the borrower. It is due "within 90 days of the date of loan approval." Loans approved within 90 days of each other combine for the fee, there is no refund after disbursement, and SBA Express waives the fee for veterans.
Source: SOP 50 10 8.1, Section A, Ch. 4, SBA Guaranty Fee (Upfront Fee); When the Upfront Fee Must be Paid
Seller note standby terms and third-party consents are reviewed before closing.
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The annual service fee
SBA sets the lender's annual service fee each fiscal year. "This fee cannot be charged to the Borrower," so the lender pays it. The SOP states no amount, and this page states none.
Source: SOP 50 10 8.1, Section A, Ch. 4, 7(a) Lender's Annual Service Fee
Packaging fees, other lender fees and prohibited fees
A packager's fee is limited. The SOP lists a flat $2,500 or a percentage basis, and "the maximum fee that may be charged to an Applicant on a percentage basis is $30,000." SBA Form 159 is required above $2,500, and split loans carry one fee. A percentage fee may not exceed 5% for loans of $150,000 or less or 3% for loans above $150,000, or the lender's rate on similarly sized non-SBA loans if lower, and is capped at $30,000.
Source: SOP 50 10 8.1, Section A, Ch. 4, Packaging Fees
Many fees are prohibited outright: "commitment, bonus, origination, broker, commission, referral, or similar fees," along with points, prepayment fees and renewal fees. Extraordinary servicing is capped at 2% per year, and a late fee may be up to 5%. The prepayment cost that does exist is the Subsidy Recoupment Fee on loans of 15 years or more, paid to SBA; see the loan terms explainer. The cost of a financial due diligence report, such as the business valuation, can be passed to the borrower, and "Any funds expended by the Applicant on the report can count toward the equity injection."
Source: SOP 50 10 8.1, Section A, Ch. 4, Prohibited Fees; Subsidy Recoupment Fee; Appendix 15, Financial Due Diligence
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Upfront fee bands at the median loan
Applying the maximum tiers above to the median acquisition loan in the SBA file gives a sense of scale. For all 48,902 loans (FY2018 to FY2026), the median is $645,250, with a guaranteed portion of $483,938 at the 75% guaranty and a maximum upfront fee of about $14,518. The table shows each industry's median loan and the fee range for loans between the 25th and 75th percentile.
| Industry | Median loan | Fee at median | Fee range, middle half of loans |
|---|---|---|---|
| Full-Service Restaurants | $411,700 | $9,263 | $5,063 to $21,499 |
| Hotels and Motels | $2,621,250 | $71,223 | $43,745 to $112,813 |
| Limited-Service Restaurants | $350,000 | $7,875 | $4,556 to $15,601 |
| Beer, Wine, and Liquor Retailers | $650,000 | $14,625 | $8,345 to $30,614 |
| Gasoline Stations | $1,436,000 | $37,888 | $21,000 to $65,439 |
| General Automotive Repair | $562,500 | $12,656 | $6,750 to $28,282 |
| Plumbing, Heating, and Air-Conditioning Contractors | $734,000 | $19,268 | $6,599 to $40,953 |
| All Other Specialty Trade Contractors | $673,500 | $15,154 | $6,784 to $45,207 |
| Child Care Services | $763,300 | $20,037 | $8,297 to $43,048 |
| Insurance Agencies and Brokerages | $720,000 | $18,900 | $7,875 to $34,732 |
Illustrative, before any FY notice adjustments. Arithmetic: the loan times the guaranty (85% to $150,000, 75% above) times the tier rate; the tier is chosen by loan amount. Actual fees are the lender's figures and may be lower than the maximums.
What this means for a business acquisition
The upfront fee scales with the guaranteed portion of the loan, so in an acquisition it follows the size of the purchase loan. Because it may be financed, the fee need not be a separate cash payment at closing. The 90-day due date runs from approval, not from closing, which matters when valuation and environmental reports delay the closing; see the timeline explainer. The complete buyer guide covers the rest of the costs a buyer should expect, including equity under the down payment rules.
Questions buyers ask
How much is the SBA guaranty fee?
The SOP charts maximums on the guaranteed portion: 2% for loans of $150,000 or less, 3% to $700,000, and 3.5% up to $1,000,000 of guaranteed portion plus 3.75% above that. On a $5,000,000 loan with a 75% guaranty, the maximum totals $138,125. SBA may announce temporary changes for a fiscal year, so check the current figures.
Who pays the guarantee fee on an SBA loan?
The lender pays SBA, and the lender is permitted to pass the cost to the borrower, so it may be financed. The annual service fee is different: "This fee cannot be charged to the Borrower." The upfront fee is due within 90 days of the date of loan approval. There is no refund after disbursement, and the Express program waives the fee for veterans.
Is there an annual SBA fee?
The SOP sets an annual service fee each fiscal year, and it states that "This fee cannot be charged to the Borrower." The lender pays it. The SOP states no amount, which is set by SBA notice.
What can a packager or lender charge on top?
A packaging fee is limited to a flat $2,500 or a percentage basis, with SBA Form 159 required above $2,500. A percentage fee may not exceed 5% for loans of $150,000 or less or 3% for loans above $150,000, or the lender's rate on similarly sized non-SBA loans if lower, and is capped at $30,000. The SOP prohibits commitment, bonus, origination, broker, commission, referral and similar fees, as well as points, prepayment fees and renewal fees.
Are there other limits on lender fees?
Extraordinary servicing fees are capped at 2% per year, and a late fee may be up to 5%. Out-of-pocket costs of the financial due diligence report, such as the business valuation, can be passed to the borrower, and funds the buyer spends on it count toward the equity injection.
Sources
SBA SOP 50 10 8.1 (effective October 1, 2026), headings cited:
- Section A, Ch. 4: 7(a) Loan Program Fees; SBA Guaranty Fee (Upfront Fee); Calculation of the Upfront Fee; When the Upfront Fee Must be Paid; 7(a) Lender's Annual Service Fee; Packaging Fees; Prohibited Fees; Subsidy Recoupment Fee
- Appendix 15: Financial Due Diligence
- Appendix 16: General Requirements
SBA pages: 7(a) loans, 7(a) loan program. Loan data: SBA 7(a) FOIA file, data.sba.gov, as of September 30, 2026.
Cite this page: SBA Acquisition Data, "SBA loan fees 2026: guaranty fee table, annual fee and lender fees", https://sbaacquisitiondata.com/sba-loan-fees, published November 1, 2026 (data as of September 30, 2026).
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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