No SBA Guaranty Fee for Loans under 500K! New Fee Structure on Government Guaranty Fee for SBA Loans

In SBA Loans by Key Commercial Capital

PRESS RELEASE:  September 1, 2022

For all new loan applications as of October 1, 2022, the new structure will be as follows for calculation of the SBA Guaranty Fee:

There will be NO FEE:  For all loans under 500,000.  The fee will be waived until further notice or announcement.  See the chart below for calculation of other levels of the fee:

Loan AmountFee
500,001 to 700,0000.55% 
700,001 to 1,000,0001.05%
1,000,001 to 5,000,0003.5% of the Government Guaranteed portion up to 1,000,000, plus 3.75% of Government Guaranteed portion over 1,000,000 *

Note* The Government Guaranteed portion of the loan is 75%

If you have already applied and the lender has a loan number assigned to your file from the SBA, your application will not be eligible for the discount.  This new fee structure is only available on loan files that receive a loan number from the SBA as of October 1, 2022 and forward.

The fee is now much easier to calculate for smaller loans at 1,000,000 or below.  The fee is calculated on the total loan amount x the multiplier, without factoring in the guaranty percentage. The 75% Guaranty Fee is only factored in when the loan is at or above 1,000,001.

Four examples:

Example 1:  A loan for 455,000 would have NO SBA Guaranty Fee.  It would be waived entirely.

Example 2:  A loan for 620,000 would have an SBA Guaranty Fee of $3,410 (620,000 x .0055) 

Example 3:  A loan for 852,000 would have an SBA Guaranty Fee of $8,946 (852,000 x .0105)

Example 4:  A loan for 2,100,000 would have an SBA Guaranty Fee of $76,250

(Example 4 – The first Million has a fee of 35,000 (1,000,001 x .035) and the second 1,100,000 has a fee of 41,250 (1,100,000 x .0375). These are added together for a total fee of 76,250)

Let us know if you have further questions on this or any subject about franchise financing, business acquisition financing, franchise expansion or any non-franchise project.  We are happy to schedule a call to speak with you.  We offer in-depth consultation for qualified borrowers on all aspects of SBA lending. The best way to obtain information from us is to complete the online questions.  Click the pre-qualify button and share a bit of information with us.  The answers you share are NOT a formal application.  They are a way for us to get a small amount of background information about your file, so we can be well-prepared with information that is specific to your project when we proceed with a scheduled call.