The five-year timeline
The upfront fee is a percentage of the guaranteed portion, and for most of the last five years the answer for a typical borrower was simply zero. The table shows the upfront fee rate for standard-term 7(a) loans by gross loan size and fiscal year. Rates apply to the guaranteed portion; waiver eligibility is based on gross loan size.
- FY2023 (Oct 2022 – Sep 2023). $0 for loans of $500,000 or less (waiver). Above $500,000, the standard structure applied: 3% of the guaranteed portion from $500,001 to $700,000, then 3.5%, with 3.75% on the guaranteed portion above $1 million.
- FY2024 (Oct 2023 – Sep 2024). $0 for loans of $1 million or less — the waiver expanded by half a million dollars. Loans above $1 million paid reduced fees (roughly half the standard charge for loans between $1 million and $2 million).
- FY2025 (Oct 2024 – Sep 2025). Same as FY2024: $0 up to $1 million; above $1 million, 3.5% of the guaranteed portion.
- FY2026 (Oct 2025 – Sep 2026). Waivers ended. Full statutory structure restored: 2% up to $150,000, 3% from $150,001 to $700,000, 3.5% of the guaranteed portion to $1 million plus 3.75% beyond (Notice 5000-872051). A $950,000 manufacturer-only waiver was the last survivor.
- FY2027 (from Oct 1, 2026). Same tiers as FY2026, but the zero-fee waiver returns in a new shape: $700,000 or less for manufacturers, food-supply-chain businesses and rural small businesses (Notice 5000-881797).
The same loan, five different fiscal years
Nothing isolates the swing better than one borrower and one loan. Take a $350,000 7(a) loan with a 75% SBA guaranty — the guaranteed portion is $262,500, which puts it in the 3% tier whenever fees apply.
Approved in FY2023: $0. Approved in FY2024: $0. FY2025: $0. The same loan approved on October 1, 2025 or later: $7,875, commonly financed into the loan, which adds interest on top. Three years ago the same borrower at the same bank paid nothing; today the fee is the price of admission.
The FY2027 waiver reshuffles who pays $0. A rural food producer borrowing $400,000 is back to $0. A manufacturer borrowing $800,000 goes from a waived FY2026 to paying 3% of the guaranteed portion in FY2027. Loan size now decides more than business type does.
Why fees came back
The waivers were never permanent policy. They were appropriations-driven relief, first introduced in the pandemic years and renewed annually because Congress kept funding them, and the notices always carried the same warning: subject to the availability of appropriations. When the funding stopped, the statutory structure returned in full.
That is also why fee history matters when you compare lenders. A quote generated in September reflects the old fiscal year; a quote in October reflects the new one. Lenders sometimes pass expired tables around for weeks. The guarantee fee calculator prices the current fiscal year from the cited notice, and the fee-year update log records every change with its date.
Questions people ask next
Were SBA guarantee fees really $0 for three years?
For most borrowers, yes. The upfront fee was waived for loans of $500,000 or less in FY2023, and the waiver expanded to $1 million for FY2024 and FY2025. Loans above those caps paid the standard structure. The waivers were appropriations-driven and always carried the warning that they depended on funding.
Why did the fee come back in FY2026?
The appropriations that funded the waivers ran out, so FY2026 restored the full statutory structure: 2% up to $150,000, 3% from $150,001 to $700,000, and 3.5% (plus 3.75% over $1 million) of the guaranteed portion above $700,000. SBA Information Notice 5000-872051 has the detail.
How do I know which fiscal year’s fee applies to my loan?
The fee in effect on the day the SBA accepts the loan into the program. Around September and October this matters: a lender quote from late September reflects the old fiscal year, while an approval after October 1 prices the new one. The SBA’s 90-day rule covers the gap for loans already approved.
Will FY2027 fees change mid-year?
The October 1, 2026 tables are set by Notices 5000-881797 and 5000-881796, but the waivers remain subject to appropriations, so mid-year adjustments are possible. This page and the update log on the FY2026 changes guide record any change with its date.