SBA Information Notice 5000-881797, published September 3, 2026, sets the 7(a) fee schedule for fiscal year 2027 (FY2027). It applies to 7(a) loans approved from October 1, 2026 through September 30, 2027. If you're planning an SBA 7(a) loan, the fees that apply are set by the date your loan is approved, so the October 1 changeover matters for any deal close to the finish line.
The two 7(a) fees, in plain English
SBA charges two separate fees on a 7(a) loan, and only one of them is yours:
- Upfront guaranty fee. A one-time fee on the SBA-guaranteed portion of the loan. Lenders often pass it to the borrower, so ask yours how it will be charged.
- Lender's annual service fee. Set at 0.55% of the outstanding balance of the guaranteed portion for FY2027. Per the notice, lenders may not pass this fee on to the borrower.
Because the upfront fee is calculated on the guaranteed portion rather than the full loan, you need to know the guaranty percentage. Per SBA's 7(a) program page, SBA guarantees 85% of loans of $150,000 or less and 75% of loans above $150,000.
FY2027 upfront fee schedule
For 7(a) loans with a maturity longer than 12 months, the notice sets these upfront fees:
| Loan amount | Upfront fee (on the guaranteed portion) |
|---|---|
| $150,000 or less | 2% (lender may retain up to 25% of the fee) |
| $150,001 – $700,000 | 3% |
| $700,001 – $5,000,000 | 3.5% on the guaranteed portion up to $1,000,000, plus 3.75% on the guaranteed portion above $1,000,000 |
Short-term loans (maturity of 12 months or less) carry a 0.25% upfront fee on the guaranteed portion.
Who pays no upfront fee
For loans of $700,000 or less, the upfront fee is 0% if the borrower is:
- a manufacturer (NAICS sectors 31–33),
- in the food supply chain (the notice lists specific NAICS codes, spanning crop and livestock farming, farm-product wholesale and warehousing, grocery retail, and refrigerated or frozen trucking of farm and grain products), or
- a business located in a rural area.
The notice also sets a $0 upfront fee for SBA Express loans made to businesses owned and controlled by a veteran or the veteran's spouse, citing section 7(a)(31)(G) of the Small Business Act.
Eligibility for each category is defined by SBA, not by lenders or by us, so confirm your NAICS code and rural-area status with your lender before assuming the waiver applies.
What the fees look like in dollars
These examples apply the notice's percentages and SBA's 85%/75% guaranty levels to standard-maturity loans that don't qualify for a waiver. They're illustrations, not quotes, and your lender's closing costs are separate.
- $100,000 loan: 85% guaranteed = $85,000. At 2%, the upfront fee is $1,700.
- $500,000 loan: 75% guaranteed = $375,000. At 3%, the upfront fee is $11,250. A qualifying manufacturer, food-supply-chain, or rural borrower would pay $0.
- $1,000,000 loan: 75% guaranteed = $750,000. At 3.5%, the upfront fee is $26,250.
- $2,000,000 loan: 75% guaranteed = $1,500,000. The first $1,000,000 at 3.5% is $35,000, and the remaining $500,000 at 3.75% is $18,750, for a total of $53,750.
Notice what happens at the $700,000 line. A $700,000 loan from a qualifying borrower pays nothing upfront; a $700,001 loan from the same borrower falls in the 3.5% tier. If you're near that line, loan size is worth discussing with your lender.
The 90-day combining rule
The notice restates a rule worth knowing if you're considering more than one 7(a) loan. When two or more 7(a) loans with maturities over 12 months are approved for the same applicant (including affiliates) within 90 days of each other, they're treated as one loan for determining the guaranty percentage and the upfront fee. The rule applies whether the loans come from the same lender or different ones, and lenders may not split loans to avoid fees. For working capital program (WCP) and export working capital (EWCP) loans, separate treatment applies, as described in the notice.
Fees that can come later
Two other fee triggers appear in the notice:
- Extending a short-term loan beyond 12 months triggers an additional upfront fee.
- Increasing a 7(a) loan triggers an additional upfront fee on the increased amount, calculated under the rules in effect when the loan was originally approved.
What to do with this
- Ask your lender which fee schedule applies and when your loan is expected to be approved. The approval date, not the application date, controls.
- Check whether you qualify for the 0% upfront fee by confirming your primary NAICS code and whether your business address counts as rural under SBA's criteria.
- Compare total cost, not only SBA fees. Interest rate, lender fees, and packaging or closing costs also affect what the loan costs you.
Where ClearValue fits
ClearValue Lending is a small business funding platform, not the SBA and not a lender. We route financing applications to lender partners who work within SBA's current rules, including whichever fee schedule applies at approval. For how the program compares to other options, see our SBA 504 FY2027 fee waiver explainer and our guide to the SBA SOP 50 10 8.1 acquisition-financing changes. If you're ready to explore options, start an application.
This content is educational and does not constitute financial or legal advice. Fee amounts are drawn from SBA Information Notice 5000-881797 and apply to 7(a) loans approved between October 1, 2026 and September 30, 2027; examples are illustrations only and assume standard guaranty percentages. Eligibility for fee relief is determined by SBA's criteria. ClearValue Lending is a funding platform, not a lender, broker, or financial advisor.