What the SBA's FY 2027 7(a) Fee Schedule Sets for Loans Approved From 1 October 2026
The SBA's 7(a) upfront fee tiers, the 0.55% annual service fee and the FY 2027 waivers for loans approved from 1 October 2026, with the rules that change the fee.
The SBA's 7(a) program is its primary business loan program, and its guarantee fees are set each federal fiscal year. For loans approved from 1 October 2026 through 30 September 2027, a new fee schedule applies, with waivers that differ from the prior year. Founders comparing lender quotes need to know what the fee is charged on, who pays it and when it is waived.
The upfront fee is separate from the interest rate. It is a one-time charge on the guaranteed part of the loan, while the annual service fee is paid by the lender. Several rules in the schedule change the fee when loans are made close together, extended or increased.
What the Guarantee Covers and What the Fee Is Charged On
The SBA describes 7(a) as its primary business loan program, with a maximum loan amount of $5 million. Eligible uses include working capital, refinancing business debt, machinery and equipment, real estate and changes of ownership.
The SBA guarantees a share of each loan, and the upfront fee is calculated on that guaranteed share rather than the full loan. NerdWallet gives an example: a $1.1 million loan with a 75% guarantee has $825,000 guaranteed, so the fee is $2,062.50 at 0.25% or $28,875 at 3.5%, depending on term. NerdWallet puts the maximum SBA guarantee on a 7(a) loan at $3.75 million.
The guarantee percentages are where sources differ. ClearValue Lending gives 85% for loans of $150,000 or less and 75% above that. The SBA's 7(a) program page gives those splits only for its Working Capital Pilot, so the split on a standard 7(a) loan should be confirmed in the lender's documents.
The FY 2027 Upfront Fee Tiers
For loans with maturities over 12 months approved from 1 October 2026, the upfront fee is 2% of the guaranteed portion for loans of $150,000 or less. It is 3% for loans from $150,001 to $700,000. For loans from $700,001 to $5 million, it is 3.5% on the first $1 million of the guaranteed portion, plus 3.75% above that. Loans with maturities of 12 months or less carry a fee of 0.25%.
Coleman Report says a lender may keep up to 25% of the 2% fee on the smallest loans. ClearValue Lending says the approval date, not the application date, decides which fiscal year's schedule applies.
The notice number comes from ClearValue Lending alone. Coleman Report says SBA has released the FY 2027 schedule but gives no number. ClearValue also describes the top tier in more than one way, so the breakpoints should be checked against the SBA notice itself.
The Annual Service Fee and Who Carries It
Separate from the upfront fee, the lender pays an annual service fee of 0.55% of the outstanding guaranteed balance. Coleman Report and ClearValue Lending both say lenders may not pass this fee on to borrowers.
The upfront fee reaches borrowers differently. NerdWallet says it is typically passed from the lender to the borrower, sometimes rolled into monthly repayments and sometimes deducted from loan proceeds before funding.
What Changed From FY 2026 to FY 2027
Coleman Report says the FY 2026 schedule, effective 1 October 2025, waived the upfront fee entirely on 7(a) loans of $950,000 or less to manufacturers in NAICS sectors 31 to 33. The annual service fee that year was the same 0.55%.
For FY 2027, the upfront fee is waived on loans of $700,000 or less to three groups: manufacturers in NAICS sectors 31 to 33, specified food supply-chain businesses and businesses in a rural area. Coleman Report says SBA determines a business is rural through E-Tran using the project address and Census Bureau data, with the lender entering the ZIP code. The food category is described least precisely. Coleman Report's headline calls it grocery, while ClearValue says the notice lists specific NAICS codes, so eligibility should be checked against that code list.
Veteran-owned businesses have a separate $0 upfront fee on SBA Express loans, including businesses owned by a veteran's spouse. Coleman Report says the lender must document eligibility in the loan file.
“The upfront fee is calculated on the guaranteed portion of the loan, not the full amount.”
Rules That Change the Fee After Approval
Two or more 7(a) loans with maturities over 12 months, approved for the same applicant within 90 days of each other, are treated as one loan for the guaranty percentage and the upfront fee. Coleman Report and ClearValue Lending both say the rule covers affiliates and applies regardless of lender. ClearValue adds that SBA states lenders may not split loans to avoid fees.
Changes after approval carry fees too. ClearValue Lending says extending a short-term loan beyond 12 months triggers an additional upfront fee. Increasing a loan triggers an upfront fee on the increased amount, calculated under the rules in effect when the original loan was approved.
Coleman Report adds a deadline for that increase fee. The lender must pay it within 30 days of SBA's approval of the increase, or the total guaranty is canceled.
Checking a Lender Quote Against the Schedule
Four checks connect a quote to the schedule. The first is the maturity, because a loan of 12 months or less carries 0.25%, while a longer loan uses the size tiers.
The second is the approval date. Loans approved from 1 October 2026 use the FY 2027 schedule, which runs through 30 September 2027. Schedules are set each fiscal year, so a quote dated in a different year may use different figures.
The third is the base for the percentage. The upfront fee applies to the guaranteed portion, not the gross loan, so a quote that shows the fee on the full amount does not match the schedule.
The fourth is any waiver. The FY 2027 threshold is $700,000, and a loan of $700,001 falls outside the waiver and into the 3.5% tier. A waiver depends on the business category, the rural determination or the veteran documentation, and each has its own conditions.
