SBA Resources · FY2027 Schedule (updated October 2026)
SBA Guaranty Fee Calculator
The exact FY2027 upfront fee on your 7(a) loan, computed on the guaranteed portion, the way the SBA actually charges it.
For FY2027 (loans approved October 1, 2026 to September 30, 2027), the SBA 7(a) upfront guaranty fee is 2% of the guaranteed portion for loans up to $150,000 (85% guaranty), 3% for $150,001 to $700,000 (75% guaranty), and 3.5% of the guaranteed portion up to $1 million plus 3.75% above it for larger loans. Loans of $700,000 or less to manufacturers (NAICS 31-33), listed food-supply-chain businesses, and rural businesses pay 0%. The lender also pays SBA a 0.55% annual service fee on the guaranteed balance, which it may not pass on to you. Source: SBA Information Notice 5000-881797.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.
FY2027 Guaranty Fee Calculator
7(a) maximum is $5,000,000. For loans with terms of 12 months or less, a different short-term fee applies.
FY2027 SBA 7(a) Upfront Guaranty Fee Schedule
The fee applies to the guaranteed portion, not the full loan. SBA guarantees 85% of loans up to $150,000 and 75% of larger 7(a) loans, so the effective cost on the total loan runs roughly 1.7% to 2.8% depending on size. The schedule below is FY2027 per Information Notice 5000-881797, for loans with a maturity over 12 months (loans of 12 months or less pay 0.25% of the guaranteed portion).
| Loan Amount | SBA Guaranty | Fee (on guaranteed portion) |
|---|---|---|
| Up to $150,000 | 85% | 2% |
| $150,001 to $700,000 | 75% | 3% |
| $700,001 to $5,000,000 | 75% | 3.5% of guaranteed portion to $1M, then 3.75% above $1M |
| $700,000 or less to a manufacturer (NAICS 31-33), listed food-supply-chain business, or rural business | 85% / 75% | 0% |
Worked Examples
| Loan | Guaranteed Portion | FY2027 Fee | Effective % of Loan |
|---|---|---|---|
| $150,000 | $127,500 (85%) | $2,550 | 1.70% |
| $350,000 | $262,500 (75%) | $7,875 | 2.25% |
| $700,000 | $525,000 (75%) | $15,750 | 2.25% |
| $1,000,000 | $750,000 (75%) | $26,250 | 2.63% |
| $2,000,000 | $1,500,000 (75%) | $53,750 | 2.69% |
| $5,000,000 | $3,750,000 (75%) | $138,125 | 2.76% |
Examples assume no fee exception. If the business qualifies for the FY2027 manufacturer, food-supply-chain, or rural exception, the $150,000, $350,000, and $700,000 loans above pay $0.
How the SBA Guaranty Fee Is Calculated
- Find the guaranty percentage, 85% for loans of $150,000 or less, 75% for larger 7(a) loans.
- Compute the guaranteed portion, loan amount × guaranty percentage. This is the fee base.
- Check the 0% exception, loans of $700,000 or less to manufacturers (NAICS 31-33), listed food-supply-chain businesses, and rural businesses pay no upfront fee in FY2027.
- Otherwise apply the FY2027 tier rate, 2% (loans ≤$150k), 3% ($150,001 to $700k), or for larger loans 3.5% on the first $1M of guaranteed portion plus 3.75% on the rest.
- Decide how to pay it, most borrowers finance the fee into the loan; remember it then adds to your debt service and belongs in your DSCR math.
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Frequently Asked Questions
How much is the SBA guaranty fee in FY2027?
For FY2027 (loans approved October 1, 2026 to September 30, 2027), loans of $150,000 or less pay 2% of the guaranteed portion (85% guaranty). Loans of $150,001 to $700,000 pay 3% of the guaranteed portion (75% guaranty). Loans above $700,000 pay 3.5% of the guaranteed portion up to $1 million plus 3.75% of the guaranteed portion above $1 million. Loans of $700,000 or less to manufacturers (NAICS 31-33), SBA's listed food-supply-chain codes, and businesses located in a rural area pay 0%. Source: SBA Information Notice 5000-881797.
Is the SBA guaranty fee charged on the whole loan or the guaranteed portion?
The guaranteed portion only. SBA guarantees 85% of loans up to $150,000 and 75% of larger 7(a) loans, and the fee percentages apply to that guaranteed slice, not the full loan amount. On a $500,000 loan, the fee base is $375,000 (75%), so the FY2027 fee is $11,250, about 2.25% of the total loan (or $0 if the business qualifies for the manufacturer, food-supply-chain, or rural exception).
Can the SBA guaranty fee be financed into the loan?
Yes. The upfront guaranty fee is typically financed into the loan rather than paid out of pocket, and lender loan packages usually capitalize it alongside closing costs. It still increases your loan balance and debt service, so include it when you run your DSCR numbers.
Does the SBA ever waive the guaranty fee?
Only for certain borrowers. The FY2027 schedule charges a fee at every tier, including 2% on loans up to $150,000, with one main exception: loans of $700,000 or less to manufacturers (NAICS 31-33), businesses in SBA's listed food-supply-chain codes, and businesses located in a rural area pay a 0% upfront fee. SBA Express loans to veteran-owned businesses also pay no upfront fee. Separately, the lender pays SBA an annual service fee of 0.55% of the guaranteed balance and may not pass it on to you. Fee schedules reset every SBA fiscal year (October 1), so always confirm against the current fiscal-year notice, this page tracks FY2027 per Information Notice 5000-881797.