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SBA.gov // Disaster Recovery // Loan Information

FEES ASSOCIATED WITH SBA LOANS

To offset the costs of the SBA's loan programs to the taxpayer, the Agency charges lenders a guaranty and a servicing fee for each loan approved. These fees can be passed on to the borrower once they have been paid by the lender. The amount of the fees are determined by the amount of the loan guaranty.

For loans approved on or after October 1, 2004, the following fee structure applies:

For loans of $150,000 or less, a 2 percent guaranty fee will be charged. Lenders are again permitted to retain 25 percent of the up-front guarantee fee on loans with a gross amount of $150,000 or less.

For loans more than $150,000 but up to and including $700,000, a 3 percent guaranty fee will be charged.

For loans greater than $700,000, a 3.5 percent guaranty fee will be charged.

The annual on-going servicing fee for all 7(a) loans approved on or after October 1, 2004 shall be 0.5 percent of the outstanding balance of the guaranteed portion of the loan. The legislation provides for this fee to remain in effect for the term of the loan.

COMBINATION FINANCING:

Beginning October 1, 2004, Comination financing will no longer be allowed

PROHIBITED FEES:

Processing fees, origination fees, application fees, points, brokerage fees, bonus points, and other fees that could be charged to an SBA loan applicant are prohibited. The only time a commitment fee may be charged is for a loan made under the Export Working Capital Loan Program.