SBA Loan Fees Explained: What Should You Expect to Pay?
When planning for an SBA loan, borrowers naturally focus on the interest rate and equity injection. But there’s another piece of the financing equation that is important to understand: fees.
SBA loans come with several different types of fees, and not all of them work the same way. Some are set by the SBA, while others cover the lender’s work or third-party expenses required to close the loan.
Here are the three main categories you should expect.
1. Packaging Fees
Packaging fees cover the work required to prepare, process, and package your SBA loan application.
SBA regulates the fees that lenders and agents may charge borrowers in connection with a 7(a) loan. Lenders may charge a flat servicing and packaging fee of up to $2,500.
Unlike your interest rate or certain loan terms, these fees are subject to SBA rules rather than being completely at the lender's discretion.
2. Closing Costs & Third-Party Fees
Just like buying a home, closing an SBA loan involves certain expenses needed to finalize the transaction.
Depending on your loan and project, these may include:
Appraisals
Environmental reports
Business valuations
UCC or lien searches and filing fees
Legal documentation
Title work
Background checks or other required reports
The exact amount varies because every transaction is different. A loan involving real estate, for example, will generally require different third-party work than a straightforward business startup loan.
Some lenders may require deposits earlier in the process to cover these expenses, while others collect them at closing. Your lender should provide a breakdown of the expected costs before your loan closes.
3. SBA Guaranty Fee
The SBA guaranty fee is usually the largest individual fee borrowers see.
Why does it exist? The SBA guarantees a portion of a 7(a) loan for the lender. For most Standard 7(a) loans over $350,000, that guarantee is 75% of the loan amount. The guaranty fee is calculated based on that guaranteed portion, not simply the total loan amount.
For SBA fiscal year 2027, which applies to loans approved from October 1, 2026 through September 30, 2027, the upfront guaranty fee for most 7(a) loans with terms longer than 12 months is:
$150,000 or less: 2% of the guaranteed portion
$150,001–$700,000: 3% of the guaranteed portion
$700,001–$5 million: 3.5% of the guaranteed portion up to $1 million, plus 3.75% of the guaranteed portion above $1 million
An Example
Say you receive a $500,000 SBA 7(a) loan with a 10-year repayment term.
The SBA guarantee would generally be 75%:
$500,000 × 75% = $375,000
The FY 2027 guaranty fee for a $500,000 loan is 3% of that guaranteed portion:
$375,000 × 3% = $11,250
So, the SBA guaranty fee would be $11,250.
Importantly, the lender pays this fee to the SBA but is permitted to pass the cost along to the borrower. The SBA also charges lenders an annual service fee, but that fee cannot be passed along to the borrower.
Can SBA Loan Fees Be Financed?
In many cases, certain eligible fees and closing costs can be included in the SBA loan rather than paid entirely out of pocket.
However, this depends on the type of expense, your total project costs, and how the lender structures the loan. When reviewing a term sheet, don't just look at the total fees. Ask:
How much will I need to pay out of pocket?
How much can be financed into the loan?
When are the fees due?
Are any deposits or fees non-refundable?
These questions can make a meaningful difference in how much cash you actually need to get to closing.
The Bottom Line
SBA loan fees can look complicated at first, but they generally fall into three buckets: packaging fees, closing and third-party costs, and the SBA guaranty fee.
At SBA Source, we help borrowers compare not only rates and equity requirements, but also the fees and closing costs associated with each offer. Our goal is to make sure you understand the full cost of your financing before choosing a lender.