The SBA 7(a) upfront guaranty fee trips people up because it is not a percentage of the loan. It is a percentage of the part of the loan SBA guarantees. Getting that one step right is the whole calculation. The rates below are the FY 2027 schedule (loans approved October 1, 2026 – September 30, 2027), verified against SBA Information Notice 5000-881797.
Step 1 — find the guaranteed portion
SBA guarantees a share of each 7(a) loan, up to these maximums:
- 85% on loans of $150,000 or less
- 75% on loans over $150,000
So a $500,000 loan has a guaranteed portion of up to $375,000 (75%). The fee is charged on that number.
Step 2 — apply the tier rate
The rate is set by the total loan amount, then applied to the guaranteed portion. For loans with a maturity over 12 months:
| Loan amount | Rate on the guaranteed portion |
|---|---|
| $150,000 or less | 2% |
| $150,001 – $700,000 | 3% |
| $700,001 – $5,000,000 | 3.5% up to $1,000,000 guaranteed, plus 3.75% above |
Loans with a maturity of 12 months or less are charged 0.25% of the guaranteed portion. And for FY 2027 the upfront fee is 0% on loans of $700,000 or less to manufacturers (NAICS 31–33), food supply-chain businesses and rural businesses.
Worked examples
1) $50,000, 10-year term. Guaranteed 85% = $42,500. Tier is 2%. Fee = $850.
2) $150,000, 10-year term. Guaranteed 85% = $127,500. Still the 2% tier. Fee = $2,550.
3) $500,000, 10-year term. Over $150,000, so guaranteed 75% = $375,000. Tier is 3%. Fee = $11,250.
4) $2,000,000, 10-year term. Guaranteed 75% = $1,500,000. This is the top tier: 3.5% on the first $1,000,000 guaranteed = $35,000, plus 3.75% on the remaining $500,000 = $18,750. Fee = $53,750.
Short-term example: a $100,000 loan with a maturity of 12 months or less is guaranteed 85% = $85,000, charged at 0.25% = $212.50.
What the borrower actually pays
The upfront guaranty fee above is the borrower’s cost, and it is usually financed into the loan rather than paid in cash at closing. On loans of $150,000 or less the lender may retain a quarter of the upfront fee, but that does not change what the borrower is charged. The separate 0.55% lender’s annual service fee is paid by the lender to SBA and, by the notice, may not be passed to the borrower — so it is not part of your out-of-pocket cost.
To run your own numbers, the SBA guarantee fee calculator does both steps for any loan size, maturity and guaranty percentage; for the fixed-asset program see SBA 504 loan fees.
When this schedule applies
These rates apply to 7(a) loans approved by SBA between October 1, 2026 and September 30, 2027. A loan approved on September 29, 2026 uses the FY 2026 schedule even if it closes later. SBA sets the fees each fiscal year, and the source notice with its effective date is linked on this site.
The examples use the maximum guaranty percentages; your actual guaranteed portion is set by the lender and SBA. This page is general information, not financial or legal advice — confirm the current figures with your lender and the SBA notice before relying on them.