by David Wright
SBA's FY2027 7(a) fee schedule takes effect October 1, 2026. The notice changes the annual lender service fee and sets upfront guaranty fees and exceptions that can materially affect loan economics.
KEY TAKEAWAYAsk for the fee calculation in writing before closing. The relevant fee depends on loan amount, maturity, guaranty structure, business category, location, and other program rules.
What changes on October 1
SBA Information Notice 5000-881797 applies to 7(a) loans approved from October 1, 2026 through September 30, 2027. It sets the FY2027 lender annual service fee at 0.55% of the outstanding guaranteed balance. SBA states that lenders may not pass that annual service fee to the borrower.
The notice also sets the upfront guaranty fee schedule and several exceptions. The borrower-facing effect depends on the specific loan structure and eligibility.
The standard upfront fee schedule
For loans with maturities longer than 12 months, the notice lists an upfront fee of 2% of the guaranteed portion for loans of $150,000 or less; 3% of the guaranteed portion for loans from $150,001 through $700,000; and, for loans from $700,001 through $5 million, 3.5% of the guaranteed portion up to and including $1 million plus 3.75% of the guaranteed portion over $1 million.
For loans with maturities of 12 months or less, the upfront fee is 0.25% of the guaranteed portion.
Important FY2027 exceptions
For loans of $700,000 or less, SBA lists a 0% upfront fee for eligible manufacturers in NAICS sectors 31-33, specified food-supply-chain industries, and businesses located in a rural area. The notice also provides separate fee rules for certain working-capital, export, and veteran-owned SBA Express loans.
Eligibility details matter. A business should not assume that an industry label, address, or ownership characteristic automatically qualifies without confirming the applicable SBA rules with the lender.
The 90-day rule can change the calculation
For many 7(a) loans with maturities longer than 12 months, two or more loans approved for an applicant and its affiliates within 90 days are treated as one loan for determining the guaranty percentage and upfront fee calculation. SBA also states that lenders are not permitted to split loans to avoid fees.
That means a financing plan involving multiple closings or related entities should be reviewed as a whole rather than evaluating each loan in isolation.
A practical loan-planning checklist
Before closing, ask the lender to identify the gross loan amount, guaranteed portion, maturity, applicable upfront guaranty fee, any exception or waiver being applied, whether another recent 7(a) approval affects the calculation, and every lender or third-party fee that is separate from SBA's guaranty fee.
Then compare total financing cost, cash required at closing, repayment terms, collateral and guaranty requirements, prepayment considerations, and the operational return the borrowed capital is expected to produce. The lowest headline rate is not always the lowest total-cost option.
Quick Q&A
When do the FY2027 fees take effect?
The notice applies to eligible 7(a) loans approved from October 1, 2026 through September 30, 2027.
Can the lender pass the 0.55% annual service fee to the borrower?
SBA states that lenders may not pass the lender annual service fee on to the borrower.
Does every loan of $700,000 or less have a 0% upfront fee?
No. The 0% exception applies only to specified categories described in the notice, including eligible manufacturers, listed food-supply-chain industries, and businesses located in a rural area.
Conclusion
The FY2027 fee notice is a reminder that loan planning should focus on the full financing structure, not just the advertised interest rate. A written calculation makes it easier to verify the assumptions, compare alternatives, and avoid surprises at closing.
Next Step
ASBI can help Atlanta-area entrepreneurs organize financing questions, strengthen business plans and projections, and prepare for lender conversations. Program eligibility and final fee calculations should always be confirmed directly with the lender and SBA.
Practice Links
Sources
U.S. Small Business Administration. Information Notice 5000-881797: FY 2027 7(a) Program Fees.
SBA PDF: 7(a) Fees Effective October 1, 2026 for Fiscal Year 2027.
Educational business information only. Program rules, eligibility, fees, and lender terms can change. Verify current requirements directly with SBA and the lender before making financing decisions.
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