September 8, 2026

Bob Coleman
Founder & Publisher

SBA Hot Topic Tuesday: Grocery, Manufacturing and Rural Businesses Get New FY 2027 Fee Relief

SBA 7(a) Loans Up to $700,000 Can Carry a 0% Upfront Fee

SBA has released its FY 2027 7(a) fee schedule, effective for loans approved October 1, 2026 through September 30, 2027.

The biggest change: certain 7(a) loans of $700,000 or less will have a 0% upfront guaranty fee.

The waiver applies to loans of $700,000 or less made to manufacturers in NAICS sectors 31-33, specified food supply-chain businesses, and businesses located in a rural area.

SBA determines a business is rural through E-Tran using the project address and Census Bureau data. The lender enters the ZIP code and relies on the rural/urban designation E-Tran assigns.

For other 7(a) loans with maturities exceeding 12 months, the upfront guaranty fees are:

• $150,000 or less: 2% of the guaranteed portion. The lender may retain no more than 25% of the fee.
• $150,001 to $700,000: 3% of the guaranteed portion.
• $700,001 to $5 million: 3.5% of the guaranteed portion up to $1 million, plus 3.75% of the guaranteed portion above $1 million.

SBA set the FY 2027 Lender’s Annual Service Fee at 0.55% of the outstanding guaranteed balance.

The lender pays the fee. It cannot be passed on to the borrower.

Lenders also need to pay attention to the 90-day rule.

When two or more 7(a) loans with maturities exceeding 12 months are approved for the same applicant, including affiliates, within 90 days, SBA treats the loans as one loan when determining the guaranty percentage and upfront fee.

This applies even when different lenders make the loans.

The upfront fee on the second loan is calculated as if the loans had been approved together, minus the fee already paid or due on the first loan.

SBA also states that lenders may not split loans to avoid fees.

SBA Express loans made to businesses owned and by a veteran or the spouse of a veteran continue to carry a $0 upfront fee. The lender must document eligibility in the loan file.

Loan increases can also trigger an additional upfront fee.

The fee is calculated under the rules in effect when the original loan was approved. The lender must pay the additional fee within 30 days of SBA approval of the increase or the total loan guaranty will be canceled.

Loans with maturities of 12 months or less carry an upfront fee of 0.25% of the guaranteed portion.

The FY 2027 fee schedule takes effect October 1, 2026.