SBA loan costs include the SBA guarantee fee (0%–3.5% of the guaranteed portion, based on loan size — often waived for loans under $1M in recent years), lender origination fees (typically 1%–2%), and standard closing costs. The SBA caps what lenders can charge and publishes current fee schedules on sba.gov. Interest rates are also regulated: SBA 7(a) rates are tied to Prime plus a lender spread capped by SBA rules.
SBA loans — primarily the 7(a) and 504 programs — are government-backed, which means the SBA guarantees a portion of the loan to reduce lender risk. That guarantee comes with a cost: the SBA guarantee fee, paid by the borrower. The SBA's official fee schedule is updated periodically and is the authoritative source — always verify current fees before closing.
The SBA guarantee fee is calculated on the guaranteed portion of the loan (the SBA guarantees 75–85% of a 7(a) loan). Historically, the fee schedule has been tiered by loan size:
SBA lenders are permitted to charge certain fees but must follow SBA guidelines on which fees are allowable and at what levels. Common lender charges include an origination or packaging fee (typically 1%–2% for 7(a) loans, subject to SBA guidance). Third-party costs — appraisal, environmental review, attorney fees, title — are pass-throughs. The SBA prohibits excessive or duplicative fees; if a lender's fee schedule seems unusually high, ask them to identify which fees are SBA-allowable versus lender discretionary.
SBA 7(a) variable rates are set as Prime Rate + a lender spread, with maximum spreads capped by loan maturity and size. Longer maturities and smaller loan amounts carry slightly wider allowed spreads. As of mid-2025, Prime Rate was approximately 7.5%, placing typical variable 7(a) rates in the 10%–11.5% range for most borrowers — but exact rates depend on the lender, loan structure, and collateral. Fixed-rate 7(a) loans are also available. The SBA's current maximum rate chart is the definitive source.
SBA 504 loans finance commercial real estate and major equipment via a three-way split: bank (50%), SBA-backed debenture through a Certified Development Company (40%), and borrower equity (10%). The CDC/SBA portion carries a fixed rate tied to 10-year Treasury bonds plus a spread for CDC servicing fees. Total effective cost is competitive with conventional commercial real estate loans.
The SBA guarantee fee schedule is updated at the start of each federal fiscal year (October 1). Fee waivers may apply in some years but not others. Always verify the current schedule at sba.gov before budgeting closing costs for an SBA loan.