SBA Information Notice 5000-881797

SBA Information Notice 5000-881797

Effective 2026-10-01 · publisher's stamp for this provision

SBA Information Notice TO: All SBA Employees and 7(a) Lenders CONTROL NO.: 5000-881797 SUBJECT: 7(a) Fees Effective October 1, 2026 for Fiscal Year 2027 and 90-Day Rule Clarification EFFECTIVE: October 1, 2026 PUBLICATION: September 3, 2026 Each year SBA reviews certain fees payable to SBA by 7(a) Lenders (“Lenders”) and borrowers to determine the appropriate fees to manage the estimated costs of the 7(a) loan program. This Notice announces (1) the 7(a) Lender’s Annual Service Fee (also known as the “Lender’s Annual Service Fee”) and the SBA Guaranty Fee (also known as the Upfront Fee) for 7(a) loans for fiscal year 2027 (FY 2027), and (2) the exceptions to those fees authorized for FY 2027 for the 7(a) loan program. The following fees are effective for all 7(a) loans approved on October 1, 2026, through and including September 30, 2027. For guidance on when all FY 2027 7(a) loan fees are due, see SOP 50 10 8.1, Section A, Chapter 4, Para. C. All loan amounts are based on the gross loan approval amount, including the SBA- guaranteed and unguaranteed portions. 7(a) Lender’s Annual Service Fee: The adjusted FY 2027 Lender’s Annual Service Fee will be 0.55% of the outstanding balance of the guaranteed portion of each loan. This includes 7(a) Working Capital Pilot (WCP) loans. Lenders may not pass the Lender’s Annual Service Fee on to the Borrower. SBA Guaranty Fee (Upfront Fee): Except for Export Working Capital Program (EWCP) loans, Working Capital Program (WCP) loans, and SBA Express loans made to veteran-owned businesses, the adjusted FY 2027 Upfront Fee, based on gross loan approval amount, including SBA-guaranteed and unguaranteed portions, will be: For loans of $700,000 or less, to manufacturers (NAICS sectors 31-33), food supply chain (NAICS Codes 1111, 1112, 1113, 1121, 1122, 1123, 1124, 1125, 1129, 1141, 1151, 1152, 423820, 4244, 4245, 424910, 445110, 4842201, 484230, 493120, 493130), and businesses that are located in a rural area, the Upfront fee is 0%. 1 NAICS 484220 and 484230 are limited to refrigerated and frozen trucking, farm products, grain products, and livestock. PAGE 1 of 4 EXPIRES: 10/1/27 For loans with a maturity that exceeds 12 months, the Upfront Fees are: • For loans of $150,000 or less: 2% of the guaranteed portion of the loan. The Lender may retain no more than 25% of the fee (i.e., at least 1.5% must be remitted to SBA). • For loans of $150,001 to $700,000: 3% of the guaranteed portion of the loan. • For loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion of the loan up to and including $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000. For loans with a maturity of 12 months or less (Short-term loans): 0.25% of the guaranteed portion of the loan. Multiple 7(a) loans made within 90 days of each other: Except for scenarios involving WCP and EWCP loans, when two or more 7(a) loans (with maturities exceeding 12 months) are approved for an applicant, including its affiliates, within 90 days of each other, the loans are considered as one loan for the purpose of determining the percentage of guaranty and the Upfront Fee calculation. This rule applies regardless of whether the loans were approved by the same or different Lenders. For WCP loans, and EWCP loans: When two or more 7(a) loans are approved for an Applicant (including its affiliates), within 90 days of each other, and one or more of the 7(a) loans is an WCP or EWCP loan, the loan amounts are combined as if they are one loan to determine the percentage of guaranty and Upfront Fee relief for manufacturers. For purposes of calculating the Upfront Fee in this scenario, WCP and EWCP loans are not combined with any other 7(a) loans since their guaranty fees are based on the maturity as outlined in this notice. Annual Service Fee for multiple 7(a) loans within 90 days: The Annual Service Fee is set for each loan on a standalone basis without respect to any other loans made (i.e., the loans are not aggregated). Upfront Fee calculation for multiple 7(a) loans within 90 Days: The applicable Upfront Fee for the subsequent loan(s) will equal the amount of the fee that would have been charged had the loans been combined, less the fee that was paid or is due to be paid on the first loan approved. The fee will never be a negative amount. Lenders are not permitted to split loans for the purpose of avoiding fees. These rules apply regardless of whether the loans were approved by the same or different Lenders. Additional Upfront Fee for Extensions of Short-Term 7(a) Loans When the maturity of a short-term 7(a) loan is extended beyond 12 months, an additional Upfront Fee is due. Lenders may contact the appropriate SBA Commercial Loan Service Center for assistance. The additional fee must be paid electronically to SBA within 30 days from the date the Lender agrees to the extension, or the total loan guaranty will be canceled. The Lender may charge the additional fee to the borrower after the Lender has notified SBA that the maturity has been extended and has paid the additional Upfront Fee. PAGE 2 of 4 EXPIRES: 10/1/27 SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete Must be accompanied by SBA Form 58 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, the Upfront Fee will be $0 in accordance with section 7(a)(31)(G) of the Small Business Act (15 U.S.C. § 636(a)(31)(G)). Lenders must document in their loan file the eligibility for fee relief. Upfront Fee for EWCP loans: • For EWCP loans with a maturity of 12 months or less: the Upfront Guaranty fee is 0.25% of the guaranteed portion of the loan. • For EWCP loans with a maturity of 13 up to 24 months: the Upfront Fee is 0.525% of the guaranteed portion of the loan. • For EWCP loans with a maturity of 25 up to 36 months: the Upfront Fee is 0.80% of the guaranteed portion of the loan. When an EWCP loan is extended beyond the original maturity date, an additional Upfront Fee may be due to SBA based on the fee schedule above. The Lender must pay SBA the difference in the Upfront Fee originally paid and what the fee would have been if initially approved at the new longer maturity. Additional Upfront Fee for 7(a) Loan Increases When a 7(a) loan is increased, an additional Upfront Fee is due on that increased amount. The additional fees are based on the rules in effect at the time the loan was originally approved. The amount of the additional Upfront Fee due for an increase will equal what the fee would have been if the increase were part of the original loan amount, less the amount of the original fee (if already remitted). The additional Upfront Fee associated with the increase must be paid electronically within 30 days from the date the increase was approved, or the total loan guaranty will be canceled. On loans that have been initially disbursed, the Upfront Fee associated with any increase approved by SBA must be paid to SBA, even if the increase is subsequently canceled. Adjustments to the Annual Service Fee due to loan increases: The Lender’s Annual Service Fee for a loan is calculated based on the outstanding balance of the guaranteed portion of the loan in accordance with the fee schedule in effect at the time the loan was approved. When the loan is increased, the Annual Service Fee is recalculated based on the revised loan amount. See SOP 50 10 8.1 Section A, Chapter 4, Subparagraph C. for more information on additional fees for loan increases. PAGE 3 of 4 EXPIRES: 10/1/27 SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete Must be accompanied by SBA Form 58 Prohibition on increases to 7(a) loans made under the Economic Aid Act: In FY 2027, as in fiscal years 2022-2026, SBA will be unable to approve increases to 7(a) loans that were approved from December 27, 2020, through September 30, 2021. The Economic Aid Act provided for higher guaranty percentages and fee reductions for eligible 7(a) loans as described in Information Notice 5000-20084. These authorities expired on September 30, 2021; therefore, a request by a borrower for additional funding on a 7(a) loan approved during the period when the Economic Aid Act provisions were in effect must be submitted as a new loan application. Upfront Fee for 7(a) WCP Loans: • For 7(a) WCP loans with a maturity of 12 months or less: the upfront guaranty fee is 0.25% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 13 up to 24 months: the Upfront Fee is 0.525% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 25 up to 36 months: the Upfront Fee is 0.80% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 37 up to 48 months: the Upfront Fee is 1.075% of the guaranteed portion of the loan. • For 7(a) WCP loans with a maturity of 49 up to 60 months: the Upfront Fee is 1.35% of the guaranteed portion of the loan. When a 7(a) WCP loan is extended beyond the original maturity date, an additional Upfront Fee may be due to SBA based on the fee schedule above. The Lender must pay SBA the difference in the Upfront Fee originally paid and what the fee would have been if initially approved at the new longer maturity. Questions Questions concerning this Notice may be directed to the Lender Relations Specialist in the local SBA Field Office. Thomas Kimsey Associate Administrator Office of Capital Access PAGE 4 of 4 EXPIRES: 10/1/27 SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete Must be accompanied by SBA Form 58

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