SBA guaranty fee

Definition

The upfront fee for the SBA's guarantee, scaled to the loan size.

Why It Matters

It is one of the closing-cost lines first-time buyers forget until the settlement statement, and on a larger loan it runs into real money. Model it early, because it is financed into the deal and moves both your cash to close and the loan balance you will carry.

In numbers: A $1M loan is 75% guaranteed ($750k); at the FY2026 rate of 3.5% on that portion the upfront fee runs about $26,250, usually financed into the balance rather than paid at the table.