Glossary · The loan itself
SBA guaranty fee
In short
This is a one-time fee paid to the SBA by the lender, but usually passed on to you, to cover the cost of the SBA's guarantee on a portion of your loan. It's a percentage of the guaranteed amount.
What it means in a deal
The SBA guaranty fee can be financed into your loan, increasing your total project costs. The fee amount varies based on the loan size and guaranteed portion. It's a significant closing cost, so factor it into your equity injection and total funding needs.
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 SBA guaranty 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?
- Beyond the upfront guaranty fee, what other ongoing fees or charges are associated with an SBA 7(a) loan?
- Are there any annual fees I must pay on an SBA 7(a) loan after the upfront guaranty fee?
- What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?
- What is the typical range for the SBA 7(a) loan processing fee (upfront guaranty fee) for an acquisition 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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