FY2027 tiers, SBA Information Notice 5000-881797
SBA Guaranty Fee Calculator for FY2027 SBA 7(a) Loan Fees and SBA Loan Closing Costs
The SBA guaranty fee for fiscal year 2027 is 2% of the guaranteed portion on 7(a) loans of $150,000 or less, 3% on loans of $150,001 to $700,000, and 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% above that on loans of $700,001 to $5,000,000. On a $1,000,000 business acquisition loan with the usual 75% guaranty, the fee is $26,250, and it can be paid out of the loan.
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Guaranteed portion
Upfront guaranty fee
As a share of the loan
Packaging fee ceiling
- Lender’s annual service fee, year one: . Paid by the lender and not passed to you.
- Of the fee, the lender may keep up to .
- The fee can be paid from loan proceeds and is refunded if the loan is cancelled before any disbursement.
Educational estimate from the published FY2027 tiers · not a lender quote
Those figures come from SBA Information Notice 5000-881797, published on 3 September 2026 and in force for every 7(a) loan approved from 1 October 2026 through 30 September 2027. The tiers are the same as fiscal 2026. The same notice sets the upfront fee at 0% on loans of $700,000 or less to manufacturers, a listed set of food supply chain businesses and businesses located in a rural area, and keeps the lender’s annual service fee at 0.55% of the guaranteed balance, a fee the lender is not allowed to pass on to you.
For a buyer, the guaranty fee is usually the largest single fee on an SBA acquisition loan, but it is not the only cost. SBA prohibits origination points, broker fees and prepayment fees from the lender, caps packaging fees, and lets the lender pass through real out-of-pocket costs such as the business valuation and attorney time. The table below lists every fee, who sets it and who ends up paying it.
This page is educational and is not a loan quote, legal or tax advice. Your lender’s fee itemization governs.
The guaranty fee is set by a public table and is easy to check. The business you are borrowing to buy is the part that needs real verification.
Read from the SBA notice and SOP 50 10 8.1, 5 October 2026
Every fee on an SBA 7(a) loan to buy a business, and who pays it
Figures are taken from SBA Information Notice 5000-881797 (FY2027 fees), SOP 50 10 8.1 and 13 CFR 120.220 to 120.223. Where a fee is a ceiling rather than a fixed price, the table says so.
Swipe to see every column →
| Fee | Amount | Who pays | Source |
|---|---|---|---|
| Upfront guaranty fee | 2% of the guaranteed portion up to $150,000 gross, 3% to $700,000, then 3.5% up to $1,000,000 guaranteed plus 3.75% above it. 0% up to $700,000 for manufacturers, listed food supply chain and rural businesses | Lender pays SBA within 90 days of approval and may pass it to you after first disbursement. It can come from loan proceeds | Information Notice 5000-881797 |
| Lender’s annual service fee | 0.55% a year of the outstanding guaranteed balance | The lender only. It may not be passed to the borrower | Information Notice 5000-881797 |
| Packaging fee | Flat fee up to $2,500 without documentation. Percentage fees capped at 5% on loans of $150,000 or less and 3% above, $30,000 maximum | Borrower, itemized in writing. Above $2,500 the lender files SBA Form 159 | SOP 50 10 8.1, 13 CFR 120.221(a) |
| Out-of-pocket closing costs | Actual cost of filing and recording, appraisals, the business valuation, environmental reports and attorney time billed hourly | Borrower, itemized and kept in the loan file | 13 CFR 120.221(c) |
| Prepayment (subsidy recoupment) fee | 5%, 3% or 1% of prepayments above 25% in years one to three, only on maturities of 15 years or more | Borrower, to SBA | 13 CFR 120.223 |
| Late payment fee | Up to 5% of the regular payment when more than 10 days late | Borrower | 13 CFR 120.221(d) |
| Extraordinary servicing fee | Up to 2% a year on the specially serviced part, with SBA approval | Borrower, rare on acquisition loans | 13 CFR 120.221(b) |
| Origination points, broker or referral fees, lender prepayment fees, renewal fees | Prohibited | Nobody | SOP 50 10 8.1, Prohibited Fees |
Information Notice 5000-881797 read firsthand on 5 October 2026. The guaranty share is 85% on loans of $150,000 or less and 75% above, and SBA’s guaranty to one business is capped at $3,750,000, per SOP 50 10 8.1. The lender may keep up to 25% of the upfront fee on loans of $150,000 or less.
Our arithmetic on the FY2027 tiers
The FY2027 SBA guaranty fee at common acquisition loan sizes
The rate is chosen by the gross loan amount, then applied to the guaranteed portion. That is why the effective cost is lower than the headline rate, and why it jumps at $150,001 and at $700,001. Rows assume a maturity over 12 months and no waiver.
Swipe to see every column →
| Gross 7(a) loan | Guaranty share | Guaranteed portion | Upfront fee (our math) | Fee as a share of the loan |
|---|---|---|---|---|
| $150,000 | 85% | $127,500 | $2,550 | 1.70% |
| $150,001 | 75% | $112,501 | $3,375 | 2.25% |
| $350,000 | 75% | $262,500 | $7,875 | 2.25% |
| $700,000 | 75% | $525,000 | $15,750 | 2.25% |
| $700,001 | 75% | $525,001 | $18,375 | 2.63% |
| $1,000,000 | 75% | $750,000 | $26,250 | 2.63% |
| $2,000,000 | 75% | $1,500,000 | $53,750 | 2.69% |
| $5,000,000 | 75% | $3,750,000 | $138,125 | 2.76% |
The $5,000,000 row matches the worked example in SOP 50 10 8.1 ($35,000 plus $103,125). One dollar over $700,000 adds $2,625 to the fee, so if a deal sits just above the line, check whether a slightly larger equity injection or seller note keeps the loan at $700,000. The fee is figured on the gross loan, so a fee financed into the loan is itself part of the base.
Check the guaranty fee line before you sign the closing statement
The guaranty fee is the one SBA charge a buyer can check to the dollar. It comes from a published table, it is calculated on the guaranteed portion of the gross loan, and the lender must itemize every fee it charges you in writing. If the number on your closing statement is higher than the calculator above, ask which line the difference sits in. It is usually a packaging fee, attorney time or a valuation, all of which are allowed but none of which are the guaranty fee.
What no fee table can check is the business itself. The lender underwrites the seller’s historical earnings, and a deal that falls apart in diligence after the loan is approved still costs you the valuation, the legal work and weeks of your time. That is why every listing on Buyouts carries verified MRR, churn and growth before you make an offer, not after.
Side by side
This calculator against a generic SBA fee calculator
A fair look at what each does well. Both are useful. Here is where they differ.
| Feature | Buyouts | A generic SBA fee calculator |
|---|---|---|
| What the rate applies to | The guaranteed portion, at 85% or 75% and capped at $3,750,000 | Some apply the rate to the whole loan, which overstates the fee by a third |
| Fiscal year | FY2027 tiers from the 3 September 2026 notice | Often does not say which fiscal year its tiers come from |
| Tier cliffs | Flags the jumps at $150,001 and $700,001 | Silent on where one dollar moves the fee |
| Waivers | Models the 0% fee for rural, manufacturing and food supply chain loans up to $700,000 | Rarely included |
| Other fees | Annual service fee, packaging ceiling and what lenders may not charge | The guaranty fee only |
| What comes next | SaaS listings with verified MRR you can take to a lender | A loan application form |
Comparison reflects general, publicly understood positioning. Capabilities change, so check each marketplace for the latest. Trademarks belong to their owners.
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The fee is on the guaranteed portion
SBA picks the rate using the full loan amount and then charges it on the slice it guarantees. On a $1,000,000 loan that is 3.5% of $750,000, or $26,250, not 3.5% of $1,000,000. That one detail is the most common mistake in quick estimates, and it overstates the fee by a third.
The $700,000 line costs $2,625
A $700,000 loan pays 3% on its guaranteed portion. A $700,001 loan pays 3.5% on all of it. The difference is $2,625 for a single dollar of extra borrowing. If your deal lands just over the line, putting a little more equity in or moving that amount to a seller note can be the cheapest money in the closing.
What a buyer can actually negotiate
You cannot negotiate the guaranty fee itself, because SBA sets it. You can negotiate the packaging fee, ask for every fee in writing, and choose whether to pay the guaranty fee in cash or from proceeds. You can also compare lenders on what they pass through, since lenders differ on which closing costs they pass through.
Keep reading on the parts of a deal this page touches: the full guide to an SBA loan to buy a business, the business acquisition loan calculator with payment and DSCR, when an SBA acquisition loan carries a prepayment fee, the SOP 50 10 8.1 change of ownership rules, the SBA loan down payment in detail, what a low cash deal still costs at closing.
Good questions
SBA guaranty fees, answered
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Listing figures are published by their sellers and self-reported · valuation content is educational, not a guaranteed sale price or return · trademarks belong to their owners