SBA Announces FY 2026 7(a) and 504 Loan Fees — Good News for Manufacturers
September 2, 2025
Bob Coleman
Founder & Publisher
SBA Announces FY 2026 7(a) and 504 Loan Fees — Good News for Manufacturers
Effective October 1, 2025, the Small Business Administration has released its annual fee schedules for both the 7(a) and 504 loan programs for Fiscal Year 2026. Each year, SBA adjusts fees to ensure the programs remain budget-neutral and aligned with estimated subsidy costs. This year’s notices bring important updates — including significant relief for U.S. manufacturers.
7(a) Loan Program Fees
The Lender’s Annual Service Fee for FY 2026 is set at 0.55% of the outstanding balance of the guaranteed portion of each loan. Lenders are not permitted to pass this fee on to borrowers.
The Guaranty (Upfront) Fee schedule remains tiered by loan size and maturity, with percentages ranging from 2% to 3.75% for loans exceeding $150,000. Short-term loans of 12 months or less carry a reduced 0.25% fee.
Waiver for Manufacturers
For 7(a) loans to manufacturers (NAICS sectors 31–33) of $950,000 or less, the upfront guaranty fee is waived entirely. This targeted relief lowers the cost of capital for small manufacturers, a sector targeted by the Trump 2.0 as critical to U.S. economic growth and job creation.
Additional provisions apply:
- SBA Express loans made to veteran-owned businesses continue to have a $0 upfront fee.
- Export Working Capital and Working Capital Program loans have their own reduced fee schedules.
- Special rules apply when multiple loans are approved within 90 days for the same borrower.
504 Loan Program Fees
For FY 2026, SBA also finalized the 504 upfront guaranty and annual service fees.
Waiver for Manufacturers
For 504 loans to manufacturers (NAICS sectors 31–33), including both Debt Refinance with Expansion and Debt Refinance without Expansion, all upfront and annual fees are waived.
Standard 504 Loan Fees
For all other 504 loans (except manufacturer projects):
- Upfront guaranty fee: 0.50%
- Annual service fee: 0.209% of outstanding balance
For 504 Debt Refinance without Expansion loans (non-manufacturers), the annual service fee is slightly higher at 0.2115%.