The SBA guaranty fee is a one-time fee charged on 7(a) loans in exchange for the SBA's guarantee to the lender. It is a percentage of the guaranteed portion of the loan, scaled by loan size and term, and is typically financed into the loan rather than paid out of pocket at close.
Where it lands in a deal
- The fee applies to the guaranteed portion of the loan (the SBA typically guarantees 75%, 85%)
- It scales up with larger loan amounts and longer terms
- It's usually rolled into the loan, so it affects your monthly payment and DSCR rather than your cash at close
Because Congress adjusts these fees year to year, confirm the current schedule with your lender before you model the deal.
Why it matters when buying a business
The guaranty fee is a real cost that raises your loan balance and payment, so it belongs in your DSCR and cash-flow math. It also explains the SBA program's existence: that fee funds the guarantee that lets banks lend 90% against a business's cash flow. Include it when running the SBA loan calculator.
