New SBA guarantee fee changes (fees for loans below $1m)

lender profile

March 24, 2025

by a lender from University of Southern California in Los Angeles, CA, USA

Effective March 24, 2025, the SBA is revising 7(a) upfront guarantee fees.

Loans of $1 million or less:
Fees are increasing significantly. In FY 2024, there was no upfront fee (0.00%) for these loans. Under the new structure for FY 2025, loans of $150,000 or less will have a 2% fee; loans between $150,001 and $700,000 will carry a 3% fee; and loans between $700,001 and $1 million will be charged a 3.5% fee.

Loans over $1 million:
The fee will be 3.5% of the guaranteed portion up to $1 million, and 3.75% on the portion over $1 million. While this structure remains unchanged for loans above $2 million, it represents a notable increase for loans between $1 million and $2 million, which previously had lower rates of 1.45% and 1.7% respectively.
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commentor profile
Reply by a searcher
from Buena Vista University in Douglas County, CO, USA
That is me too. We received Bank approval on Friday and then just before we signed our commitment letter on Monday my lender emailed us letting us know about the change.

I just think it's bananas that the SBA doesn't need to give any sort of notice after it's been this way for 5 years and on their own website they said the stated fees were good through September###-###-#### Even giving us through the end of the month would have been helpful.
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
They took the fee structure back to the original structure that was in place. The previous administration had changed the structure and was pushing all of the fees to higher loan amounts only. I am not saying I agree with the change, but this is how the fees were prior. I think the lower fees were for smaller loans were supposed to be a temporary change to begin with.
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