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SBA Guarantee Fees Have Been Reimplemented: Everything you Need to Know About How They Will Effect Your Loans

Updated: 16 hours ago

Have you been keeping an eye on SBA loan programs? There have been some changes implemented that may push you to look a little closer into what you’re paying for.


The small business administration has implemented changes to SBA loans, including adjustments to the lender’s annual service fee and SBA guaranty fee (upfront fee). These changes were in place as of March 27, 2025, through and including September 30, 2025. Here’s everything you need to know about how these changes will affect you and your small business.





Lender’s Annual Service Fee

The 7(a) lender’s annual service fee will be 0.55% of the guaranteed portion of the outstanding balance of the loan. Including the 7(a) Working Capital Pilot (WCP) loans. Lenders may not pass the lender’s annual service fee on to the borrower. 


SBA Guaranty Fee 

The SBA guaranty fee is based on the gross loan approval amount, including the SBA guaranteed and unguaranteed portions. However, the SBA guaranty fee has some exceptions the Export Working Capital Program (EWCP) loans and SBA Express loans provided to veteran-owned businesses. The SBA guaranty fee can be passed on to the borrower. The SBA guaranty fee is calculated as follows:



For loans with a maturity that exceeds 12 months, the SBA guaranty fee is:

  • For loans of $150,000 or less: 2% of the guaranteed portion. The Lender may retain no more than 25% of the fee (i.e., at least 1.5% must be remitted to SBA).

  • For loans of $150,001 to $700,000: 3% of the guaranteed portion.

  • For loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion of the loan up to and including $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000.



For multiple 7(a) loans made within 90 days of each other: 

  • When two or more 7(a) loans (with maturities exceeding 12 months) are approved for an applicant, including its affiliates, within 90 days of each other, the loans are considered as one loan to determine the percentage of guaranty and the Upfront Fee calculation. This rule applies regardless of whether the loans were approved by the same or different Lenders.

  • Annual Service Fee for multiple 7(a) loans within 90 days: The Annual Service Fee is set for each loan on a standalone basis without respect to any other loans mad.


NOTE: For 7(a) loans with a maturity of 12 months or less (Short-term loans): 0.25% of the guaranteed portion.



For all SBA Express loans made to businesses owned and controlled by a veteran or spouse of a veteran, the Upfront Fee will be $0.


  • For EWCP loans with a maturity of 12 months or less: the Upfront Guaranty fee is 0.25% of the guaranteed portion.

  • For EWCP loans with a maturity of 13 up to 24 months: the Upfront Fee is 0.525% of the guaranteed portion.

  • For EWCP loans with a maturity of 25 up to 36 months: the Upfront Fee is 0.80% of the guaranteed portion.






  • For 7(a) WCP loans with a maturity of 12 months or less: the upfront guaranty fee is 0.25% of the guaranteed portion.

  • For 7(a) WCP loans with a maturity of 13 up to 24 months: the Upfront Fee is 0.525% of the guaranteed portion.

  • For 7(a) WCP loans with a maturity of 25 up to 36 months: the Upfront Fee is 0.80% of the guaranteed portion.

  • For 7(a) WCP loans with a maturity of 37 up to 48 months: the Upfront Fee is 1.075% of the guaranteed portion.

  • For 7(a) WCP loans with a maturity of 49 up to 60 months: the Upfront Fee is 1.35% of the guaranteed portion.




Conclusion 

The small business administration has reinstated two SBA loan fees that will be in effect from March 27, 2025, through and including September 30, 2025. The Lender’s Annual Service Fee can not be passed on to the borrower and is 0.55% of the guaranteed portion of the loan. 


The SBA guaranty fee fluctuates depending on the amount of money borrowed, ranging from 0.25% - 3.7% of the guaranteed portion of the loan. Multiple SBA 7(a) loans made within 90 days of each other are considered as one loan when determining the percentage for guaranty and the SBA guaranty fee. The annual service fee on the other hand is determined on a standalone basis. 


Capital Infusion

Are you currently looking at financing options available for your small business? Capital Infusion provides a variety of financing options such as SBA Loans, Revolving Lines of Credit, Equipment Financing, and many more. Apply now to learn what your business qualifies for!


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