How much does an SBA loan cost in fees?

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 guaranty fee, paid by the borrower. The SBA's FY2026 fee notice is the authoritative current source — always verify current fees before closing.

SBA guarantee fee

The SBA guaranty fee is calculated on the guaranteed portion of the loan (the SBA guarantees 75–85% of a 7(a) loan). For the FY2026 schedule (effective October 1, 2025, for loans with maturities over 12 months):

• Loans ≤$150,000: 2% of the guaranteed portion.
• Loans $150,001–$700,000: 3% of the guaranteed portion.
• Loans $700,001–$5M: 3.5% of the guaranteed portion up to and including $1,000,000, plus 3.75% of the guaranteed portion above $1,000,000.
• Loans with maturities of 12 months or less: 0.25% of the guaranteed portion, regardless of size.
• Note: SBA sets a new fee schedule each federal fiscal year (October 1) and has occasionally carved out narrower waivers (e.g. a 0% fee for small manufacturer loans up to $950,000 in FY2026) — verify the current fiscal year's schedule at sba.gov before budgeting closing costs.

Lender fees (also regulated)

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.

Interest rate structure

SBA 7(a) variable rates are set as Prime Rate + a lender spread, with the maximum spread capped by loan amount: 6.5% for loans of $50,000 or less, 6.0% for $50,001–$250,000, 4.5% for $250,001–$350,000, and 3.0% for loans above $350,000. Prime Rate was 6.75% as of August 20, 2026, placing typical variable 7(a) rates roughly in the 9.75%–13.25% range depending on loan size — but exact rates depend on the lender, loan structure, and collateral. Fixed-rate 7(a) loans are also available. Prime Rate itself is set off the Federal Reserve's federal funds target rate, which the FOMC reviews at each scheduled meeting. The SBA's terms, conditions, and eligibility page is the definitive source for current maximum spreads. To see what a specific rate and loan size actually cost in monthly payment and total interest, run the numbers with the business loan amortization calculator.

SBA 504 loan cost structure (different from 7a)

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.