What Business Owners Should Know About SBA Loan Fees

Picture of Mike Crowe, VP SBA Business Development Officer
Mike Crowe, VP SBA Business Development Officer
3 min read

New SBA Changes to Annual Service Fees & Upfront Fees 

The U.S. Small Business Administration (SBA) has updated its fee structure for SBA 7(a) loans for fiscal year 2026, effective October 1, 2025. These fees help support the SBA loan program and may vary based on loan size and business classification.

Current SBA 7(a) Fee Guidelines:

  • Annual Service Fee: 0.55% of the outstanding balance of the guaranteed portion of each loan

  • Loans of $150,000 or less: 2% upfront fee on the guaranteed portion

  • Loans from $150,001 to $700,000: 3% upfront fee on the guaranteed portion

  • Loans from $700,001 to $5,000,000: 3.5% upfront fee on the guaranteed portion up to $1 million, plus 3.75% on the guaranteed portion above $1 million

Certain manufacturing businesses classified under NAICS sectors 31–33 may qualify for waived upfront guarantee fees on loans up to $950,000.

Because SBA programs and fee structures can change annually, working with an experienced SBA lending team can help business owners understand current costs, eligibility requirements and available financing options.

SBA loans are designed to help growing businesses that demonstrate positive cash flow but may have limited collateral. SBA term loans can be used for a variety of business needs, including:

  • Equipment purchases

  • Business acquisitions

  • Acquisition of owner-occupied commercial real estate

  • Working capital

  • Seasonal inventory purchases

  • Short-term lines of credit

Heritage Bank specializes in small business banking. As a community bank, Heritage Bank is committed to being a resource for entrepreneurs at every stage of their business. As an approved SBA Express Lender, we offer experienced bankers who can help customers navigate one of the most flexible financing options available to small businesses.

To qualify, a business must be for-profit, independently owned and operated, and not nationally dominant in its field. The business must also be physically located and operating within the United States or its territories.

Navigating SBA fee structures and financing options can feel overwhelming, especially as program details evolve from year to year. Heritage Bank and Venturus work closely with business owners to help identify lending solutions tailored to their goals, industry, and long-term plans.