Glossary · Doing the deal
Upfront Fee(Lender closing costs)
In short
These are various charges you pay at the start of the loan, often rolled into your total project costs. They include lender fees, packaging fees, and the SBA's upfront guaranty fee.
What it means in a deal
When closing an SBA 7(a) loan, you'll encounter an upfront guaranty fee from the SBA, which can be financed. Lenders also charge their own closing costs and sometimes a packaging fee. Make sure you get a clear breakdown of all these fees in the commitment letter and understand which ones you're paying out-of-pocket versus financing.
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 Upfront 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 typical range for the SBA 7(a) loan processing fee (upfront guaranty fee) for an acquisition loan?
- What is the process for a lender to remit the upfront guaranty fee and annual service fee to the SBA?
- Beyond the guaranty fee, are there any other upfront fees charged by the lender that are specific to SBA 7(a) loans?
- What are the current fiscal year 2026 upfront guaranty fee rates for 7(a) loans?
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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