An SBA guarantee fee is a program-level fee charged on certain SBA loans to offset the cost of the U.S. Small Business Administration guaranteeing a portion of the loan. While the fee is assessed to the lender, SBA rules allow lenders to pass this cost on to the borrower. The fee applies only to the portion of the loan guaranteed by the SBA, not the total loan amount.

What changed for SBA guarantee fees in FY 2026.

The U.S. Small Business Administration updated SBA loan fee structures for Fiscal Year 2026, with changes that affect both the SBA 7(a) and 504 loan programs.

Key FY 2026 updates include:

  • SBA 7(a) guarantee fees remain largely unchanged from prior guidance, with upfront fees continuing to vary based on loan size and loan maturity.
  • New for FY 2026: SBA introduced full fee waivers for qualifying manufacturer loans (NAICS sectors 31-33) under the SBA 504 program, eliminating both the upfront guarantee fee and the annual service fee for these borrowers.
  • SBA 504 fees were reinstated for most non-manufacturer loans, introducing both an upfront guarantee fee and an annual service fee for FY 2026.
  • SBA 504 Debt Refinance without Expansion loans now include a supplemental annual service fee when issued to non-manufacturer borrowers.

These changes apply to loans approved between October 1, 2025 and September 30, 2026, unless additional SBA program guidance is issued.

Quick summary.

  • SBA guarantee fees are upfront program fees associated with SBA-guaranteed loans.
  • SBA guarantee fees apply to SBA 7(a) and SBA 504 loans, but not to SBA Microloans.
  • The fee is calculated as a percentage of the SBA-guaranteed portion of the loan, not the full loan amount.
  • Fee amounts vary based on loan size, loan term, and SBA program type.
  • New for FY 2026: qualifying manufacturer loans (NAICS sectors 31–33) under the SBA 504 program are eligible for full waivers of both the upfront guarantee fee and the annual service fee.
  • The SBA publishes annual updates to lender fees, including the guarantee fee, for the following fiscal year.

The fee rates shown on this page reflect FY 2026 SBA guidance, effective for loans approved October 1, 2025 - September 30, 2026.

SBA 7(a) guarantee fees: Fiscal year 2026.

The SBA guarantee fee applies only to the SBA-guaranteed portion of the loan, not the total approved loan amount. Fees vary based on loan size and maturity and are established annually by the U.S. Small Business Administration.

SBA 7(a) guarantee fees: Loans with a maturity of 12 months or less.

Loan amount SBA guarantee Upfront guarantee fee
$150,000 or less 85% of the loan 0.25% of the guaranteed portion
$150,001 - $700,000 75% of the loan 0.25% of the guaranteed portion
$700,001 - $5,000,000 75% of the loan* 0.25% of the guaranteed portion

* The SBA guarantees a maximum of $3.75 million on SBA 7(a) loans.

SBA 7(a) guarantee fees: Loans with a maturity of more than 12 months.

Loan amount SBA guarantee Upfront guarantee fee
$150,000 or less 85% of the loan 2% of the guaranteed portion
$150,001 - $700,000 75% of the loan 3% of the guaranteed portion
$700,001 - $5,000,000 75% of the loan* 3.5% of the guaranteed portion up to and including $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000.

* The SBA guarantees a maximum of $3.75 million on SBA 7(a) loans.

Special SBA 7(a) programs.

SBA Express Loans (Veteran-Owned Businesses)

For SBA Express loans made to businesses owned and controlled by a veteran or the spouse of a veteran, the upfront SBA guarantee fee is 0%, in accordance with Section 7(a)(31)(G) of the Small Business Act.

Export Working Capital Program (EWCP) guarantee fees

EWCP loans have a separate upfront guarantee fee structure based on loan maturity.

Loan maturity Upfront guarantee fee
12 months or less 0.25% of the guaranteed portion
13 - 24 months 0.525% of the guaranteed portion
25 - 36 months 0.80% of the guaranteed portion

SBA 504 guarantee Fees: Fiscal Year 2026.

SBA 504 loan fees are established annually by the U.S. Small Business Administration and apply only to the CDC (SBA-backed) portion of the loan. Fee treatment varies by borrower type and 504 program option.

SBA 504 fees: Loans approved October 1, 2025 through September 30, 2026.

Manufacturer loans (NAICS Sector 31-33)

For SBA 504 loans approved in FY 2026 to qualifying manufacturers, the SBA has waived both the upfront guarantee fee and the annual service fee.

This waiver applies to:

  • Standard SBA 504 loans
  • 504 Debt Refinance with Expansion
  • 504 Debt Refinance without Expansion
Fee type FY 2026 rate
Upfront SBA guarantee fee 0%
SBA annual service fee 0%

All other SBA 504 loans (excluding Debt Refinance without Expansion)

For SBA 504 loans approved in FY 2026 that are not manufacturer loans and not part of the Debt Refinance Without Expansion program, the following fees apply:

Fee type FY 2026 rate
Upfront SBA guarantee fee 0.50% of the CDC portion
SBA annual service fee 0.209% of the outstanding CDC balance

SBA 504 Debt Refinance Without Expansion (Non-Manufacturer loans)

For SBA 504 loans approved in FY 2026 under the Debt Refinance Without Expansion program, and not made to manufacturers, the SBA applies an additional supplemental annual fee.

Fee type FY 2026 rate
Upfront SBA guarantee fee 0.50% of the CDC portion
SBA annual service fee 0.2115% of the outstanding CDC balance

Includes the standard 0.209% annual service fee plus a 0.0025% supplemental fee.

Important context for SBA 504 fees.

  • SBA 504 fees apply only to the CDC portion of the loan, not the bank or borrower equity portion.
  • The upfront guarantee fee is assessed once at loan funding.
  • The annual service fee is assessed on the outstanding CDC loan balance over time.
  • Fee waivers and supplemental fees are determined by borrower classification and program type, not by lender discretion.

How SBA guarantee fees are calculated.

SBA guarantee fees are calculated based on the portion of the loan guaranteed by the SBA, not the total approved loan amount. The exact fee depends on the SBA loan program, loan size, and loan maturity.

Step 1: Identify the SBA-guaranteed portion.

Each SBA loan program guarantees only a portion of the total loan amount. For example, SBA 7(a) loans are typically guaranteed at 75% or 85%, depending on loan size, while SBA 504 loans apply fees only to the CDC (SBA-backed) portion of the loan.

Step 2: Apply the applicable fee rate.

The SBA publishes guarantee fee rates annually by fiscal year. The appropriate rate is applied to the guaranteed portion of the loan based on:

  • Loan program (7(a), 504, EWCP, or Express)
  • Loan amount tier
  • Loan maturity (12 months or less vs. more than 12 months)
  • Borrower classification or program option, where applicable (such as manufacturer status for certain 504 loans)

Step 3: Distinguish upfront vs. ongoing fees.

  • Upfront guarantee fees are assessed once, typically at loan approval or funding.
    Annual service fees, when applicable (such as for SBA 504 loans in FY 2026), are assessed on the outstanding guaranteed balance over time and are separate from the upfront guarantee fee.

Important calculation notes

  • SBA guarantee fees are not calculated on the full loan amount.
  • Fee rates are set by fiscal year, not by lender discretion.
  • Certain SBA programs and borrower categories may qualify for fee waivers or modified fee structures based on SBA guidance.

For questions about how SBA guarantee fees apply to a specific loan structure, lenders typically rely on official guidance issued by the U.S. Small Business Administration.

Example SBA guarantee fee calculations (FY 2026).

Note: These examples are for illustration only. Actual fees depend on SBA program rules, the SBA-guaranteed portion, loan structure, and any applicable waivers or program options.

Example 1: SBA 7(a) loan under $150,000, (maturity more than 12 months).

Scenario

  • Loan amount: $100,000
  • SBA guarantee: 85%
  • FY 2026 upfront fee rate: 2% of the guaranteed portion

Calculation

  • Guaranteed portion: $100,000 × 85% = $85,000
  • Upfront guarantee fee: $85,000 × 2% = $1,700

Example upfront guarantee fee: $1,700

Example 2: SBA 7(a) loan over $700,000 (maturity over 12 months).

Scenario

  • Loan amount: $2,000,000
  • SBA guarantee: 75%
  • FY 2026 fee structure:
    • 3.5% of the guaranteed portion up to $1,000,000
    • 3.75% of the guaranteed portion over $1,000,000

Calculation

  • Guaranteed portion: $2,000,000 × 75% = $1,500,000
  • First $1,000,000 × 3.5% = $35,000
  • Remaining $500,000 × 3.75% = $18,750

Example upfront guarantee fee: $53,750

Example 3: SBA 504 loan (manufacturer), FY 2026.

Scenario

  • CDC (SBA-backed) portion: $1,200,000
  • Borrower qualifies as a manufacturer (NAICS sectors 31–33)

FY 2026 treatment

  • Upfront SBA guarantee fee: waived
  • SBA annual service fee: waived

Example SBA fees:$0 upfront, $0 annual service fee

Important FY 2026 SBA guarantee fee rules for 7(a).

These rules affect how upfront guarantee fees are applied in certain scenarios under the SBA 7(a) program for FY 2026.

Multiple 7(a) loans approved within 90 days.

In many cases, if two or more SBA 7(a) loans (with maturities over 12 months) are approved for the same borrower (including affiliates) within 90 days, the SBA treats them as one combined loan for purposes of determining:

  • The SBA guaranty percentage, and
  • The applicable upfront guarantee fee tier

Note: This treatment may differ when one of the loans is a Working Capital Program (WCP) loan or an Export Working Capital Program (EWCP) loan.

Special treatment when WCP or EWCP loans are involved.

When one or more loans in the 90-day window is a WCP or EWCP loan, SBA rules may:

  • Combine loan amounts to evaluate eligibility for certain fee relief (such as manufacturer-related relief), but
  • Treat WCP/EWCP loans separately for upfront fee calculation, since those fees are based on maturity terms outlined for those programs

Extending a short-term 7(a) loan beyond 12 months.

If a short-term SBA 7(a) loan (12 months or less) is later extended to a maturity over 12 months, an additional upfront guarantee fee may be due based on the revised maturity.

Increasing a 7(a) loan after approval.

If an SBA 7(a) loan is increased, an additional upfront guarantee fee may apply to the increased amount. In FY 2026 guidance, the additional fee is generally determined by:

  • The fee rules in effect at the time the loan was originally approved, and
  • What the total upfront fee would have been if the increase had been part of the original loan amount (minus any upfront fee already paid)

Fee avoidance restrictions.

SBA rules prohibit structuring or splitting loans for the purpose of avoiding upfront guarantee fees. These rules apply even if loans are approved by different lenders.

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