SBA loans offer competitive rates and long terms — but they come with a fee structure that surprises many borrowers. Here’s a complete breakdown of every fee you’re likely to encounter, and how to factor them into your total cost of borrowing.
SBA Guarantee Fee
The most significant SBA-specific cost is the guarantee fee — the fee the SBA charges lenders to guarantee your loan, which lenders pass on to borrowers.
For SBA 7(a) loans in 2026:
- Loans up to $150,000: 0% (waived for small loans)
- Loans $150,001–$700,000: 2% of the guaranteed portion
- Loans $700,001–$1 million: 3% of the guaranteed portion
- Loans over $1 million: 3.5% up to $1M, then 3.75% on the portion above
The guaranteed portion is typically 75–85% of the loan amount. So on a $500,000 loan with 75% guarantee, the guarantee fee is 2% × $375,000 = $7,500.
For SBA 504 loans, the CDC charges its own fee structure, typically 1.5–2% of the CDC portion.
Packaging and Origination Fees
Lenders charge packaging fees for preparing and submitting your SBA loan application. These vary by lender but typically run 1–2% of the loan amount, or a flat fee of $2,000–$5,000 for smaller loans.
Some lenders bundle this as an “origination fee.” Always ask for an itemized breakdown.
Appraisal Fees
If your loan involves real estate or significant equipment, a formal appraisal is required. Expect:
- Commercial real estate appraisal: $2,500–$5,000+
- Equipment appraisal: $500–$2,500
Environmental Assessment
For commercial real estate loans, lenders typically require a Phase I Environmental Site Assessment: $1,500–$3,500. If contamination issues are found, a Phase II assessment can cost $5,000–$30,000+.
Closing Costs
Standard real estate closing costs apply to SBA loans involving real estate:
- Title search and insurance: $1,000–$3,000
- Recording fees: $100–$500
- Attorney fees: $500–$2,500
- Survey (if required): $500–$2,000
Annual Service Fee
SBA 7(a) loans carry an ongoing annual service fee — currently 0.55% of the outstanding guaranteed balance per year. This is paid by the lender but typically factored into the loan’s effective cost.
Total Cost Example
On a $750,000 SBA 7(a) commercial real estate loan:
- Guarantee fee (3% × 75% × $750,000): ~$16,875
- Origination fee (1%): $7,500
- Appraisal: $3,500
- Environmental: $2,000
- Closing costs: $3,000
- Total upfront costs: ~$32,875
These costs can often be rolled into the loan rather than paid out of pocket — confirm with your lender.
Calculate Your True SBA Loan Cost
Use our free SBA loan calculator to model your monthly payments. Always add estimated fees to the total project cost before calculating — it gives you a much more accurate picture of your debt service.