Is the SBA guaranty fee lower on a loan of 12 months or less?
Short answer
Yes. For FY2027 the fee is 0.25% of the guaranteed portion when the maturity is 12 months or less, under SBA Information Notice 5000-881797. If the maturity later passes 12 months, an added fee is due.
SBA Information Notice 5000-881797 (p. 2) sets the short-term Upfront Fee at 0.25% of the guaranteed portion. 13 CFR § 120.220(a)(1) uses the same figure for maturities of 12 months or less. The SOP chart applies it to loans up to $5,000,000 (SOP 50 10 8.1, Section A, Chapter 4, Para. C.1.a, p. 62).
Examples
- A $200,000 7(a) loan at a 75% guaranty has $150,000 guaranteed. The fee is $375.
- The same loan with a maturity over 12 months would pay 3% of $150,000, or $4,500.
- A $100,000 SBA Express line with a 12-month maturity has $50,000 guaranteed. The fee is $125.
Payment rules are stricter
- The lender must pay within 10 business days of the SBA loan number, or SBA will cancel the guaranty (Para. C.1.a.iii, about p. 64).
- The lender may charge you only after it has paid SBA.
- Once the loan number is issued, no refund is given (Para. C.1.a.viii, about p. 66).
If the maturity later passes 12 months
An added Upfront Fee is due (Para. C.1.a.v, about p. 65). The lender must pay it within 30 days of agreeing to the extension, or the total guaranty is canceled.
Export Working CapitalMoney for day-to-day costs such as payroll, rent and inventory. Full definition Program (EWCP) loans use their own schedule: 0.25% to 0.80% of the guaranteed portion, by maturity. Working Capital Pilot loans run 0.25% to 1.35% of the guaranteed portion, by maturity.
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