SBA Releases 2025 Fiscal Year Fee Adjustments

The SBA has announced the fee structure for Fiscal Year 2025. This applies to loans approved between October 1, 2024, and September 30, 2025. Every year, the Small Business Administration (SBA) reviews the fees that SBA 504 and SBA 7(a) borrowers pay. This helps  ensure the programs are financially healthy and sustainable, so they can keep providing crucial support to small businesses all over the country. 

SBA 504 Fee Impact

The upfront guaranty fee remains unchanged, making it easier for businesses to access needed funds without a significant initial financial burden. In addition, the Annual/Borrower Fee has decreased, which helps drive lowered effective rates. 

  • Upfront guaranty fee remains 0%

  • Annual/Borrower Fee is lowered to 0.331% (compared to 0.364% in FY24).  Debt Refi without Expansion annual fee is also lowered to 0.356% (compared to 0.389% in FY24.  

SBA 7(a) Fee Impact

Guaranty Fee

The SBA's upfront guaranty fee for loans with a maturity greater than 12 months remains at 0% for loans of $1 million or less. However, the upfront guaranty fee for loans between $1 million and $2 million has increased to match the fee structure for loans over $2 million.

  • Upfront guaranty fee (maturity greater than 12 months) remains 0% for loans $1MM or less.

  • Upfront guaranty fee for loans over $1MM - $2MM increased to match the guaranty fee for loans over $2MM (previously 1.45% of the guaranteed portion of the loan up to and including $1,000,000, plus 1.70% of the guaranteed portion of the loan over $1,000,000.)

  • Upfront guaranty fees for loans over $2MM remain at 3.50% 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.

There have been no changes to the SBA’s upfront guaranty fee for loans with maturities of 12 months or less. They remain at:

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

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

Lender’s Annual Service Fee

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

  • For loans of $500,001 to $1,000,000: Increased to 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.

Export Working Capital Program (EWCP) and the new Working Capital Pilot Fees

These programs have a unique fee structure. 

  • For EWCP loans of $1,000,000 or less (regardless of maturity): the Upfront Fee is 0.00%. 

  • For EWCP loans greater than $1,000,000 with a maturity of 12 months or less: the Upfront Fee is 0.25% of the guaranteed portion. 

  • For EWCP loans greater than $1,000,000 with a maturity of 13 up to 24 months: the Upfront Fee is 0.525% of the guaranteed portion. 

  • For EWCP loans greater than $1,000,000 with a maturity of 25 up to 36 months: the Upfront Fee is 0.80% of the guaranteed portion.

Working Capital Pilot Program Fees

FY 25 Working Capital Pilot Annual Service Fee (loans that receive an SBA loan number beginning October 1, 2024, through September 30, 2025): 

  • Lender’s Annual Service Fee: 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.

  • For Working Capital Pilot loans of $1,000,000 or less (regardless of maturity): the Upfront Fee is 0.00%. 

  • For Working Capital Pilot loans greater than $1,000,000 with a maturity of 12 months or less: the Upfront Fee is 0.25% of the guaranteed portion.

  •  For Working Capital Pilot loans greater than $1,000,000 with a maturity of 13 up to 24 months: the Upfront Fee is 0.525% of the guaranteed portion.

  •  For Working Capital Pilot loans greater than $1,000,000 with a maturity of 25 up to 36 months: the Upfront Fee is 0.80% of the guaranteed portion.

  •  For Working Capital Pilot loans greater than $1,000,000 with a maturity of 37 up to 48 months: the Upfront Fee is 1.075% of the guaranteed portion.

  •  For Working Capital Pilot loans greater than $1,000,000 with a maturity of 49 up to 60 months: the Upfront Fee is 1.35% of the guaranteed portion.

  •  When a Working Capital Pilot loan greater than $1,000,000 is extended beyond the original maturity date, an additional Upfront Fee may be due to SBA based on the fee schedule above. The Lender must pay SBA the difference in the Upfront Fee originally paid and what the fee would have been if initially approved at the new longer maturity. 

These fee adjustments make the 504 and 7(a) programs even more attractive to borrowers and help ensure that small businesses can continue to thrive and expand with minimal financial hurdles. Download our SBA 504 and SBA 7(a) Desk Guides to learn more about how these programs can help you support your small business clients.

Looking for an SBA 504 or 7(a) loan? Check out our Lender Deal Room for a list of potentially eligible SBA borrowers.

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