SBA announced its FY 2025 7(a) fees in Information Notice 5000-858936, 7(a) Fees Effective October 1, 2024, for Fiscal Year 2025. The fees will apply to all 7(a) loans approved by SBA between October 1, 2024, and September 30, 2025. 

Per the Notice, the 7(a) fees will be –

Lender’s Annual Service Fee: 

  • For loans with gross approval amounts of $500,000 or less – 0.00%.  (Same as FY 2024.)
  • For loans over $500,000 up to and including $1 million – 0.17% (17 basis points) of the guaranteed portion of the outstanding balance of the loan. (Up from zero for FY 2024.)
  • For loans over $1 million up to the statutory program maximum of $5 million – 0.55% (55 basis points) of the guaranteed portion of the outstanding balance of the loan. (Same as FY 2024.)

SBA Guaranty Fee (Upfront Fee)

[Excluding Export Working Capital Program (EWCP) loans, SBA Express loans made to veteran-owned businesses, and Working Capital Pilot (WCP) Program loans]:

  • If maturity exceeds 12 months:
    • For loans of $1 million or less – 0.00%. (Same as FY 2024.)
    • For loans over $1 million up to the statutory program maximum of $5 million – 3.5% of the guaranteed portion of the loan up to and including $1 million, plus 3.75% of the guaranteed portion of the loan over $1 million. (For loans over $1 million up to and including $2 million – fee increased from FY 2024 fee of 1.45% of the guaranteed portion of the loan up to $1 million, plus 1.70% of the guaranteed portion of the loan over $1 million; for loans over $2 million, no change from FY 2024 fee.)
  • If maturity is 12 months or less (short-term loan):
    • For loans of $1 million or less – 0.00%. (Same as FY 2024.)
    • For loans over $1 million – 0.25% of the guaranteed amount. (Same as FY 2024.)

[But, continuing prior policy, when the maturity of a short-term 7(a) loan greater than $1 million is extended beyond 12 months, an additional Upfront Fee is due.]

  • Upfront Fee for SBA Express Loans Made to Veteran-owned Small Businesses:
    • For all SBA Express loans made to businesses owned and controlled by a veteran or spouse of a veteran – $0.  [No change from FY 2024 since zero fee policy mandated by statute.]
  • Upfront Fee for EWCP Loans:
    • For EWCP loans of $1 million or less (regardless of maturity) – 0.00%. (Same as FY 2024)
    • For EWCP loans greater than $1 million with a maturity of 12 months or less – 0.25% of the guaranteed portion.  (Same as FY 2024.)
    • For EWCP loans over $1 million with a maturity of 13 up to 24 months –  0.525% of the guaranteed portion.  (Same as FY 2024.)
    • For EWCP loans over $1 million with a maturity of 25 up to 36 months – 0.80% of the guaranteed portion. (Same as FY 2024)

[When an EWCP loan over $1 million is extended beyond the original maturity date, an additional Upfront Fee may be due to SBA based on the fee schedule above.]

SBA also issued Information Notice 5000-859410, 7(a) Working Capital Pilot [WCP] Fees for Fiscal Years 2024 and 2025. Based on that Notice, the Lender’s Annual Service Fee for WCP loans approved by SBA on or after August 1, 2024, through September 30, 2024, will be the same as that charged for all other 7(a) loans.  The fees on WCP loans approved by SBA on or after October 1, 2024, through September 30, 2025, also will mirror the fees charged on all other 7(a) loans. For both FYs 2024 and 2025, the Upfront Fee for WCP loans of $1 million or less will be 0.00%, and for loans over $1 million the fee will be based on the loan maturity and will range from 0.25% to 1.35% of the guaranteed portion of the loan.

FY 2025 fees for 504 program loans are provided in Information Notice 5000-859701, 504 Fees Effective During Fiscal Year 2025.

Please see the referenced notices for additional details regarding the FY 2025 fees.