The SBA guaranty fee is a fee charged by the Small Business Administration (SBA) to guarantee a portion of a loan made to a small business owner. The fee is typically based on the loan amount guaranteed by the SBA. The specific fee percentages may vary depending on the type and size of the loan, as well as other factors.
Page written by Ashlyn Brooks. Last reviewed on January 2, 2025. Next review due October 1, 2026.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
An SBA loan guaranty is the portion of an SBA loan that is backed by the Small Business Administration. Basically, this gives lenders peace of mind since the SBA will cover a portion of the loan if you were not to be able to repay the amount you borrowed.
A guaranty is a win-win for both you and the SBA lender, it allows you to get the funding you need with less risk for the lender.
Let’s say you have an SBA 7a loan for $150,000. The SBA will guarantee up to 85% of a loan under that amount and up to 75% for loans over $150,000. So if you were to default on your loan, the SBA would be on the hook with your lender and repay 85% ($127,000 in this case. )
Yes, if you’re applying for or planning to use an SBA loan for business funding, an SBA guaranty is standard. It’s a precaution for the lenders since it mitigates the risk in the event that you can’t repay your SBA loan.
No, the two terms are different. While it may look like a simple spelling error, the proper term when referring to the SBA is ‘guaranty’. A ‘guarantee’ is used in reference to a person who uses their personal assets or business as a promise to repay the loan.
It all rides on the type and amount of your loan. As we mentioned earlier, the SBA covers two ranges of SBA 7a loan amounts:
Now if you’re looking at SBA express loans this guaranty drops to 50%. While some international loan types may cover up to 90%.
Guarantee fees are the fees that the lender pays the SBA to back the loan. These fees are a form of compensation for the SBA and range from 0.00% up to 3.75%. From the SBA.gov website, you can view the updates that can shift the fees and stipulations from year to year. As of fiscal year 2025, fees range depending on the fee type which can be;
The lender pays the SBA guaranty fee upfront however, the responsibility of repaying the fee and the loan amount is the borrower.
Lenders can not pass the annual service fee to the borrower but, can charge any additional upfront fees if the loan is extended. The point is to know your terms to avoid paying unnecessary fees on your loan.
To calculate the guarantee fee you first need to look at the loan type. For this example, let’s use an SBA 7a loan. The fee is calculated based on the portion of the loan that has the guaranty on it. As with the guaranty itself, the fee attached also has a structure.
If you borrow $500,000 with a 75% guaranty from the SBA, the guarantee backs $375,000. The fee rate is 3% so the fee you’ll be responsible for is $11,250. This is where the Swoop SBA loan guaranty fee calculator comes in handy.
Instead of toying with the math and contingencies, simply input your loan amount and let our tool tell you your percent charge and the total fee amount.
At Swoop we want to simplify your SBA loan process as much as possible. To do this we strive for transparency, tools and provide as many options as possible for you to choose from.
Beyond the calculations, we connect you with trusted lenders and recommendations to find the best funding options for you and your business. Are you ready to take the next step in getting financing, or wondering how to get an SBA loan, create your free account today. We’re here when you need us.
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