What fees come with an SBA 7(a) loan?
Short answer
Expect an upfront guaranty fee, possible packaging fees and out-of-pocket closing costs. Lenders may not charge origination fees or points. SOP 50 10 8.1, Section A, Chapter 4, Para. C and 13 CFR § 120.221 list what is allowed.
SOP 50 10 8.1, Section A, Chapter 4, Para. C (p. 62) groups 7(a) fees by who pays whom.
Paid to SBA
- Upfront Fee. For FY2027, it is 2% to 3.75% of the guaranteed portion, by loan size. It is 0.25% of the guaranteed portion on maturities of 12 months or less. The lender pays it and may pass the cost to you. Some loans pay 0%.
- Annual Service Fee. 0.55% of the outstanding guaranteed balance for FY2027. The lender pays it and may not charge you.
- Subsidy Recoupment Fee. You pay this only on loans of 15 years or more, if you prepay heavily in the first three years.
Charges a lender may collect from you
- Packaging: a flat fee up to $2,500 without documentation, or more with SBA Form 159, within percentage limits
- Out-of-pocket costs: filing, recording, appraisals and environmental reports
- Legal services: hourly only
- Late payment: up to 5% of the regular payment when more than 10 days late
- Extraordinary servicing: up to 2% a year on the balance needing it, with SBA's approval
- Assumption: up to 1% of the balance
Not allowed
Commitment, origination, broker and referral fees, points, renewal fees and lender prepayment fees are prohibited (Para. C.4).
Paid to a broker you hire
An Agent may charge you separately, within Para. D.7 limits, and must disclose the fee on Form 159. Amounts vary by lender.
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