SBA Announced Fiscal Year 2025 Lender Fees

July 30, 2024

Delaney Sexton
Contributing Editor

SBA Announced Fiscal Year 2025 Lender Fees

Yesterday, SBA released the lender fees for the upcoming fiscal year. For the second year in a row, SBA will not be charging upfront fees for loans $1,000,000 or less for 7(a) and 504 loans. Here are the fees:

7(a) Lender’s Annual Service Fee:

The FY 2025 Lender’s Annual Service Fee, based on gross loan approval amount, including SBA-guaranteed and unguaranteed portions, will be:

For loans of $500,000 and less: 0.00%.

For loans of $500,001 to $1,000,000: 0.17% of the guaranteed portion of the outstanding balance of the loan.

For loans of $1,000,001 to $5,000,000: 0.55% of the guaranteed portion of the outstanding balance of the loan.

SBA Guaranty Fee (Upfront Fee):

Except for Export Working Capital Program (EWCP) loans and SBA Express loans made to veteran-owned businesses, the FY 2025 Upfront Fee, based on gross loan approval amount, including SBA-guaranteed and unguaranteed portions, will be:

For loans with a maturity that exceeds 12 months, the Upfront Fees are:

For loans of $1,000,000 or less: 0.00%.

For loans of $1,000,001 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 of the loan over $1,000,000.

For 7(a) loans with a maturity of 12 months or less (Short-term loans):

For loans of $1,000,000 or less: 0.00%.

For loans $1,000,001 and greater: 0.25% of the guaranteed portion.

Multiple 7(a) loans made within 90 days of each other:

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.

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.

For all 504 loans, the following fees are effective for loans approved October 1, 2024, through September 30, 2025:

For 504 loans (other than loans made under the 504 Debt Refinance without Expansion Program) approved in FY2025:

1) The upfront guaranty fee will be 0.00% (0 basis points).

2) The annual service fee will be 0.331% (33.1 basis points) of the outstanding balance of the loan.

For 504 loans approved in FY2025 under the 504 Debt Refinance without Expansion Program:

1) The upfront guaranty fee will be 0.00% (0 basis points).

2) The annual service fee will be 0.331% plus 0.025%, for a total of 0.356% (33.1 basis points plus 2.5 basis points for a total of 35.6 basis points) of the outstanding balance of the loan.