What a 7(a) costs — every rate and fee
These are the FY2026 figures, including the fee reinstatement that caught people off guard. Every number is current.
Last reviewed June 2026 · Written against SOP 50 10 8 and current SBA notices
6.75%
WSJ Prime today
9.75%
Rate cap > $350K
$53,750
SBA fee on a $2M loan
$0
Prepay penalty, 10-yr term
The rate cap
The government caps what a lender can charge on a 7(a); start at the cap and negotiate down. Variable loans price off WSJ Prime — 6.75% since the December 2025 cut — plus a maximum spread that shrinks as the loan grows:
| Loans up to $50,000 | Prime + 6.5% → 13.25% cap today |
|---|---|
| $50,001 – $250,000 | Prime + 6.0% → 12.75% cap |
| $250,001 – $350,000 | Prime + 4.5% → 11.25% cap |
| Over $350,000 | Prime + 3.0% → 9.75% cap |
Acquisition loans over $350K — most of the market — price at or under 9.75% today, floating with Prime. Bring a strong file and lenders will offer under the cap. Fixed-rate options exist at higher caps but are rare in acquisition lending.
FY2026 upfront guaranty fees
The fee waivers are done. Small loans rode free for two fiscal years.
| Loans up to $150,000 | 2% of the guaranteed portion (85% of the loan) |
|---|---|
| $150,001 – $700,000 | 3% of the guaranteed portion (75%) |
| $700,001 – $5,000,000 | 3.5% of guaranteed portion up to $1M + 3.75% above $1M |
| Maturity ≤ 12 months | 0.25% of the guaranteed portion |
| Manufacturers (NAICS 31–33) | Upfront fee WAIVED on loans up to $950,000 in FY2026 |
| Annual service fee | 0.55% of outstanding guaranteed balance (paid by the lender; cannot be charged to you) |
A $2,000,000 acquisition loan carries a 75% guaranteed portion of $1.5M — fee = 3.5% × $1M + 3.75% × $500K = $53,750, typically financed into the loan. Loans to you and your affiliates within 90 days combine for fee math, so splitting a loan to duck a tier fails.
Other costs
Beyond the guaranty fee: lender packaging fees (capped; extraordinary servicing maxes at 2%/yr), a third-party business valuation ($1,500–$5,000), and legal and closing costs. Terms of 15 years or longer carry a 5%/3%/1% prepayment penalty in years one through three when you prepay more than 25% in a year. Standard 10-year acquisition loans carry no prepayment penalty.
Know your coverage ratio before any lender asks for it.
What this means for an acquisition
At today's 9.75% cap on a 10-year term, every $1M borrowed costs about $13,100/month. A business with $350K of owner earnings carries a $2M loan at ≈1.33x coverage; at $300K it's ≈1.14x, below most lenders' line. Shop the rate, and pick the business first.
Official SBA resources
CapBench is an independent information service — not the SBA, and not affiliated with it. For official applications, definitive rules, and direct help, go straight to the source:
- SBA 7(a) loan program — The official program rules and terms (sba.gov).
- SBA Lender Match — The SBA's free tool to connect with participating lenders.
- Find your local SBA District Office — Free in-person counseling and guidance near you.
- SBA Answer Desk — The SBA's general help line for borrowers and the public.
SBA Answer Desk: 1-800-827-5722
AI summary
Current SBA 7(a) pricing runs off WSJ Prime at 6.75%, with maximum variable spreads that shrink as loans grow — up to Prime + 6.5% on the smallest loans and Prime + 3% (9.75% today) on loans over $350,000, where most acquisitions land. The FY2026 fee waivers are over: upfront guaranty fees are at statutory maximums (for example, about $53,750 on a $2M loan), plus a 0.55% annual service fee the lender pays, with an upfront-fee waiver only for manufacturers (NAICS 31–33) up to $950,000.
Standard 10-year acquisition loans carry no prepayment penalty. This is general information, not legal, tax, or financial advice, and CapBench is not a lender.
Source: CapBench SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. CapBench is not a lender and does not guarantee financing.
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