- Total SBA closing costs typically range from 2-5% of loan amount, depending on loan size and whether real estate is involved.
- The SBA guarantee fee is the largest cost—ranging from 2.00% to 3.75% of the guaranteed portion based on loan size.
- Most closing costs can be financed into the loan, reducing cash needed at closing.
- Manufacturing loans up to $950,000 have 0% upfront fees in fiscal year 2026.
How much does it actually cost to get an SBA loan? Beyond interest rates, you’ll pay various closing costs and fees. Understanding these costs upfront helps you budget accurately and compare offers effectively.
This guide breaks down all the fees associated with SBA 7(a) loans in 2026.
SBA Closing Costs Overview
What to Expect
Total closing costs for SBA loans typically range from 2-5% of the loan amount. The exact amount depends on:
- Loan size
- Whether real estate is involved
- Third-party reports required
- Lender-specific fees
Categories of Costs
| Category | Typical Range | Notes |
|---|---|---|
| SBA guarantee fee | 0-3.75% | Based on guaranteed portion |
| Lender fees | 0.5-2% | Varies by lender |
| Third-party costs | $2,000-$15,000 | Appraisals, legal, environmental |
| Packaging fees (if applicable) | 0-2% | Some brokers charge; GoSBA doesn’t |
SBA Guarantee Fee
How It’s Calculated
The SBA charges a guarantee fee based on the loan amount and term. As of March 2025, fees were reinstated after a temporary waiver period. Current fee structure:
| Loan Amount | Guarantee Fee |
|---|---|
| $150,000 or less | 2.00% |
| $150,001 – $700,000 | 3.00% |
| $700,001 – $1,000,000 | 3.50% |
| Over $1,000,000 | 3.75% |
Fee is calculated on the guaranteed portion only (typically 75-85% of loan amount).
Fee Calculation Example
For a $500,000 SBA 7(a) loan with 75% guarantee:
| Item | Amount |
|---|---|
| Loan amount | $500,000 |
| Guaranteed portion (75%) | $375,000 |
| Fee rate | 3.00% |
| Guarantee fee | $11,250 |
For fiscal year 2026, the SBA offers fee waivers for: Manufacturing loans up to $950,000 (0% upfront fee), Veteran-owned businesses (reduced fees on certain loan types), and SBA disaster areas (temporary fee waivers may apply).
Lender Fees
Typical Lender Charges
| Fee Type | Typical Range | Notes |
|---|---|---|
| Origination/processing fee | 0.5-1.5% | Some lenders don’t charge |
| Closing fee | $500-$1,500 | Document preparation |
| Underwriting fee | $500-$2,000 | May be included in origination |
What Lenders Cannot Charge
SBA regulations prohibit lenders from charging:
- Points above SBA-allowed rates
- Excessive document preparation fees
- Unnecessary recurring fees
When comparing multiple lender offers, pay attention to total fees, not just interest rate. A lower rate with higher fees can cost more than a slightly higher rate with minimal fees. Ask each lender for a complete fee breakdown before committing.
Third-Party Costs
Appraisals and Valuations
| Report Type | Typical Cost | When Required |
|---|---|---|
| Business valuation | $3,000-$8,000 | Business acquisitions |
| Real estate appraisal | $2,500-$6,000 | Real estate involved |
| Equipment appraisal | $500-$3,000 | Major equipment purchases |
Environmental Reports
| Report Type | Typical Cost | When Required |
|---|---|---|
| Phase I environmental | $2,000-$4,000 | Real estate involved |
| Phase II environmental | $5,000-$20,000+ | If Phase I finds concerns |
Phase II environmental reports can be costly and time-consuming. If a Phase I report identifies potential contamination concerns, expect additional costs of $5,000-$20,000+ and 4-8 weeks added to your timeline.
Legal and Title Costs
| Cost Type | Typical Range |
|---|---|
| Title search | $300-$800 |
| Title insurance | 0.5-1% of property value |
| Legal/attorney fees | $1,500-$5,000 |
| UCC filing fees | $100-$300 |
Packaging and Referral Fees
SBA Loan Brokers
If you work with an SBA loan broker or packager:
- Borrower-paid packaging: 0-2% of loan amount
- Lender-paid referral: 0% to borrower (lender pays broker)
At GoSBA Loans, our service is free for borrowers—we’re compensated by the lender who wins your deal. This ensures you get multiple competitive offers without paying broker fees.
What to Watch For
- Excessive packaging fees (over 2%)
- Upfront fees before approval
- Non-refundable deposits
Complete Cost Example
Scenario: $750,000 Business Acquisition Loan
| Cost Item | Amount |
|---|---|
| SBA Guarantee Fee | |
| Guaranteed portion (75%): $562,500 @ 3.00% | $16,875 |
| Lender Fees | |
| Origination fee (1%) | $7,500 |
| Closing/document fee | $1,000 |
| Third-Party Costs | |
| Business valuation | $5,000 |
| Legal fees | $2,500 |
| Title and UCC fees | $500 |
| Total Closing Costs | $33,375 |
| As % of Loan | 4.45% |
With Real Estate
If the acquisition included real estate, add:
| Additional Cost | Amount |
|---|---|
| Real estate appraisal | $3,500 |
| Phase I environmental | $3,000 |
| Title insurance | $4,000 |
| Additional Total | $10,500 |
Can You Finance Closing Costs?
What Can Be Financed
Most SBA closing costs can be financed (added to your loan amount):
- SBA guarantee fee
- Lender origination fees
- Third-party costs (appraisals, environmental)
- Legal fees
What Typically Isn’t Financed
- Working capital reserves (counted separately)
- Escrow deposits
- Cash down payment
Financing closing costs increases your loan balance and monthly payment, but reduces cash needed at closing. For buyers who need to preserve liquidity for working capital or unexpected expenses, financing these costs is often the smart choice.
Expect to pay 2-5% of your loan amount in closing costs for an SBA 7(a) loan. The SBA guarantee fee is the largest component, followed by lender fees and third-party costs. Most of these can be financed into your loan. When comparing offers, always look at total costs—not just interest rates—and ask every lender for a complete fee breakdown before making your decision.
Frequently Asked Questions
Expect closing costs of 2-5% of loan amount, depending on loan size, whether real estate is involved, and lender fees. For a $500,000 loan, that’s roughly $10,000-$25,000 in closing costs.
The SBA guarantee fee is set by law and cannot be negotiated. However, lender fees and some third-party costs are negotiable. Comparing multiple lender offers is the best way to minimize costs.
Yes. Manufacturing loans up to $950,000 have 0% upfront fees in fiscal year 2026. Veteran-owned businesses may also qualify for reduced fees on certain loan types.
Most fees are due at closing and can often be financed into the loan. Be wary of any broker or lender demanding significant upfront fees before approval—this is often a red flag.
All-in costs should include: interest rate, SBA guarantee fee, lender fees, third-party costs, and any packaging fees. Get this complete breakdown from every lender you’re considering to make accurate comparisons.
Yes, most closing costs can be financed into your SBA loan, including the guarantee fee, lender fees, appraisal costs, and legal fees. This reduces cash needed at closing but increases your loan balance and monthly payment.
