Glossary · The loan itself
Guarantee Fee
In short
This is an upfront fee charged by the SBA to the lender, which is then passed on to you, the borrower, for the privilege of receiving an SBA loan. It helps cover the cost of the SBA's guarantee.
What it means in a deal
The guarantee fee is calculated as a percentage of the guaranteed portion of your loan. It's paid at closing and is typically financed into the loan, increasing your total project costs. You need to account for this in your deal structure.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Guarantee Fee
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- Can the lender charge application fees or underwriting fees in addition to the SBA guaranty fee?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- Can the lender charge an additional "packaging fee" on top of the SBA fees?
- Are there any upfront or annual fees charged by the SBA for their guarantee?
- Beyond the upfront guaranty fee, what other ongoing fees or charges are associated with an SBA 7(a) loan?
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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