FY2027 SBA Loan Fees for Business Buyers
September 28, 2026
For FY2027, the SBA set the 7(a) lender annual service fee at 0.55% of the outstanding guaranteed balance and states that lenders may not pass that annual fee to the borrower. The borrower-facing upfront guaranty fee varies by loan size and maturity, with specific exceptions and waivers. Separate FY2027 rules apply to 504 loans.
For loans with maturities longer than 12 months, the official notice lists an upfront fee of 2% of the guaranteed portion for loans of $150,000 or less; 3% for loans from $150,001 through $700,000; and a tiered calculation for loans from $700,001 through $5 million. Short-term loans generally carry a 0.25% upfront fee on the guaranteed portion.
The notice also provides targeted relief. For loans of $700,000 or less to qualifying manufacturers, specified food-supply-chain businesses, and businesses located in rural areas, the upfront fee is 0%. Veteran-owned businesses continue to receive a $0 upfront fee on qualifying SBA Express loans.
For most 504 loans, the FY2027 upfront guaranty fee is 0.50% and the annual service fee is 0.203% of the outstanding loan balance. The notice waives both fees for qualifying manufacturers, listed food-supply-chain businesses, and businesses located in rural areas. Different treatment applies to certain 504 debt-refinance loans without expansion.
Advisor and buyer reviewing a complete SBA acquisition budget
The upfront fee is only one closing-cost item. Buyers may also need funds for legal work, appraisal or valuation, environmental review, quality-of-earnings work when applicable, insurance, lease deposits, licenses, and working capital. The lender should explain which eligible costs can be included in the project and which require cash at closing.
SBA Loan Guy helps borrowers compare lender proposals using the complete transaction cost, not just the advertised rate. That includes reviewing the loan amount, guaranty fee, amortization, equity requirement, seller financing, and estimated cash needed at closing.
The FY2027 notice says lenders may not pass the 0.55% lender annual service fee to the borrower.
It may be included in some eligible loan structures, but the lender must calculate and document the fee correctly. Confirm the treatment in the written proposal.
No. Waivers depend on program, loan amount, industry, location, and other eligibility details stated in the official notices.
FY2027 fees should be part of the acquisition budget from the beginning. Ask the lender for a written calculation and compare total cash, debt service, and closing costs across options. Visit the SBA Loan Guy blog or book a call to review the full financing structure.
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