New SBA guarantee fee changes (fees for loans below $1m)

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by a lender from University of Southern California
in Los Angeles, CA, USA

1yr ago

New SBA guarantee fee changes (fees for loans below $1m)

redacted

Effective March 24, 2025, the SBA is revising 7(a) upfront guarantee fees.

Loans of $1 million or less:

Fees are increasing significantly. In FY 2024, there was no upfront fee (0.00%) for these loans. Under the new structure for FY 2025, loans of $150,000 or less will have a 2% fee; loans between $150,001 and $700,000 will carry a 3% fee; and loans between $700,001 and $1 million will be charged a 3.5% fee.

Loans over $1 million:

The fee will be 3.5% of the guaranteed portion up to $1 million, and 3.75% on the portion over $1 million. While this structure remains unchanged for loans above $2 million, it represents a notable increase for loans between $1 million and $2 million, which previously had lower rates of 1.45% and 1.7% respectively.

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reply by a searcher 1yr ago
from Cornell University in Salt Lake City, UT, USA

My bank just got back to me today with this information. We are closing next month. Now this adds $20k to our total cost. Any lenders/brokers have additional insight?

reply by a searcher 1yr ago
from Buena Vista University in Douglas County, CO, USA

That is me too. We received Bank approval on Friday and then just before we signed our commitment letter on Monday my lender emailed us letting us know about the change.

I just think it's bananas that the SBA doesn't need to give any sort of notice after it's been this way for 5 years and on their own website they said the stated fees were good through SeptemberredactedEven giving us through the end of the month would have been helpful.