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Glossary · The loan itself

SBA Upfront Guaranty Fee(Upfront guaranty fee)

In short

This is a one-time fee charged by the SBA to guarantee a portion of your 7(a) loan, reducing risk for the lender. It's a key part of your total project costs, usually financed into the loan.

What it means in a deal

The fee amount depends on the loan size and the guaranteed percentage. For a 7(a) loan, it's typically a percentage of the guaranteed portion, which is then passed on to you by the lender. You'll see this fee listed on your SBA Loan Authorization and it's factored into your overall funding.

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.

Common questions about SBA Upfront Guaranty Fee

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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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