Do veterans pay the SBA guaranty fee on an SBA Express loan?

No. SBA does not collect the upfront guaranty feeguaranty feeA fee SBA charges on the guaranteed part of a loan. The lender pays it and may pass it to you. Full definition on an SBA Express loan to a veteran-owned business. The rule covers a business owned and controlled by a veteran or a veteran's spouse (13 CFR 120.220(a)(3)). SBA Information Notice 5000-881797 sets the fee at $0 for FY2027 and cites section 7(a)(31)(G) of the Small Business Act.

What the waiver saves

The fee is charged on the 50% guaranteed portion. For a maturity over 12 months, the FY2027 fee you avoid is:

• $100,000 loan: 2% of the guaranteed portion, on $50,000, or $1,000.
• $300,000 loan: 3% of the guaranteed portion, on $150,000, or $4,500.
• $500,000 loan: 3% of the guaranteed portion, on $250,000, or $7,500.

A maturity of 12 months or less would pay 0.25% of the guaranteed portion, so the saving is smaller. On a $100,000 line, it is $125.

What the waiver does not cover

• The lender still owes SBA the annual service fee of 0.55% of the outstanding guaranteed balance. The lender may not pass that fee to you (Notice 5000-881797, p. 1).
• The lender may still charge fees SBA permits, such as packaging fees and out-of-pocket closing costs (SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.2).
• Interest is unchanged. The maximum depends on loan size, from Prime plus 3.0 percentage points to Prime plus 6.5 percentage points.

What the lender must do

The lender must document your eligibility for the fee relief in its loan file (Notice 5000-881797, p. 3).

All other SBA Express rules still apply, including the $500,000 limit and lender credit approval.