SBA 7(a) GUARANTY FEE
What is the SBA 7(a) Guaranty Fee?
The SBA Guaranty Fee is a key element of the SBA program, allowing the SBA to give lenders the confidence to finance small businesses that might not qualify for traditional loans. This fee helps cover the government's costs when a borrower defaults. In such cases, the SBA compensates lenders for a portion of their loss, reducing their risk and enabling them to offer more favorable terms, such as lower interest rates. Instead of raising taxes to fund the program, the SBA charges a guaranty fee, which is typically paid by the borrower.
How Much is the Guaranty Fee?
The SBA Guaranty Fee is based on the loan amount and term. The fee schedule is outlined below, but to make it easier, we also provide a calculator.
Guaranty Fee Schedule
The table below outlines the fee schedule for loans with terms longer than 12 months. Please note that the guaranty fee is currently waived for loans under $1,000,000.
| Loan Amount | Guaranty Fee |
|---|---|
| $1,000,000 or less | 0.00% |
| $1,000,001 to $5,000,000 | 3.5% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000 |
Guaranty Fee Calculator
Use our Guaranty Fee Calculator to quickly determine the SBA guaranty fees based on your loan amount, helping you understand the costs associated with your SBA loan.
Guaranty Fee Calculator
Loan Amount
$50,000
$5,000,000
Guaranty Fee1
$0
1The Guaranty Fee is eligible to be included in the loan financing.