# SBA guaranty fee

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

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. The schedule is set each fiscal year by notice: for FY2027 the fee is zero on a loan of $700,000 or less to a manufacturer, a food supply chain business or a business in a rural area.

In numbers: A $1M loan is 75% guaranteed ($750k); at the FY2027 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.

Source: https://searchspheresource.com/glossary/sba-guaranty-fee
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