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

**Short answer:** No. The upfront guaranty fee is $0 on an SBA Express loan to a veteran-owned business. That means a business owned and controlled by a veteran or a veteran's spouse (13 CFR 120.220(a)(3); Information Notice 5000-881797, p. 3).

Canonical page: https://www.sbaexpress.loans/answers/sba-express-veteran-guaranty-fee-waiver/
Last checked: 2026-11-08

No. SBA does not collect the upfront guaranty fee 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.

## Sources

- [13 CFR § 120.220(a)(3)](https://www.ecfr.gov/current/title-13/section-120.220)
- [SBA Information Notice 5000-881797, pp. 1, 3 (effective October 1, 2026)](https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. C (p. 62)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.214(d)(1); SOP 50 10 8.1, App. 18, Para. A.2 (p. 395)](https://www.ecfr.gov/current/title-13/section-120.214)