SBA Reinstates Guaranty Fees for 7(a) Loans

Effective March 27, 2025, the SBA will reinstate the Guaranty (Upfront) Fee for all 7(a) loans.

March 24, 2025, the SBA announced updates to its Fiscal Year 2025 fee schedule, impacting SBA loan applications.

What does this mean for you? 

All small business owners applying for SBA loans will incur a Guaranty Fee depending on the size of their loan.

How can I calculate this fee? 

For business owners applying for an SBA 7(a) loan1, they will now be responsible for a Guaranty Fee, which is netted out of their loan proceeds at the time of funding. This is not a good faith deposit or escrow payment, but rather a required fee deducted from the loan amount, calculated based on the loan size:

• For loans of $150,000 or less: 1.7% of the Loan Balance

• For loans of $150,001 to $500,0002: 2.25% of the Loan Balance

Why is This Happening?

The Guaranty Fee was a standard part of SBA loans prior to 2020, but it was temporarily suspended to provide relief to Small Businesses during the pandemic. Now, the SBA is reinstating the fee to sustain the program and ensure continued access to affordable financing for small businesses. Without these fees, the SBA risks financial losses that could impact the long-term availability of the 7(a) Loan Program.

Additional resources

For more details on the SBA’s 7(a) Loan Program and fee structure, visit the following resources:

info@tampabaylendersgroup.com