Glossary · The loan itself
Fee rate
In short
This is the percentage used to calculate various fees associated with your SBA 7(a) loan, such as the upfront guaranty fee. It directly impacts your total project costs.
What it means in a deal
The SBA charges an upfront guaranty fee to the lender, which is typically passed on to you, the borrower. This fee rate varies based on the loan amount and loan term, and it can be financed as part of your total project costs. Factor this into your deal budget.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Fee rate
- How does the ongoing servicing fee affect the annual percentage rate (APR) calculation for a 7(a) loan?
- What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?
- What are the current fiscal year 2026 upfront guaranty fee rates for 7(a) loans?
- What is the 'Prime Rate' when talking about SBA 7(a) loan rates?
- What specific alternative base rates are permissible for variable rate 7(a) loans?
- What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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