SBA 504 LENDING · SEPTEMBER 8, 2026
SBA Sets FY2027 504 Fees and Waives Fees for Certain Projects
The SBA's September 3 notice sets a 0.50% upfront guaranty fee and 0.203% annual service fee for most FY2027 504 loans, while waiving both for eligible manufacturing, food-supply-chain, and rural projects.
What the September 3 notice establishes
Source publication date: September 3, 2026. SBA Information Notice 5000-881796 applies to 504 loans approved from October 1, 2026, through September 30, 2027. For most 504 loans other than debt refinance without expansion, the notice sets a 0.50% upfront guaranty fee and a 0.203% annual service fee based on the outstanding loan balance. SBA describes the annual charge as the on-going guaranty fee.
- 01Effective October 1
- 02Targeted fee waivers
- 03Verify total project costs
Which eligible projects receive a waiver
The notice waives both the upfront guaranty fee and annual service fee for 504 loans to businesses in specified manufacturing sectors, designated food-supply-chain industries, and rural areas. The waiver can apply to qualifying standard 504 loans and qualifying 504 refinance transactions. The notice uses specific NAICS codes and program definitions, so a business should not infer eligibility from a general industry description or location label.
Special treatment for refinance without expansion
For FY2027 504 Debt Refinance without Expansion loans that do not qualify for the manufacturing-related waiver, the upfront guaranty fee is 0.50% and the annual service fee is 0.204%. The added 0.001 percentage point reflects the specialized fee treatment stated in the notice. These SBA fees are only part of a complete 504 transaction budget, which may also include lender, CDC, closing, third-party, and funding-related costs.
Practical borrower takeaway
Ask the Certified Development Company and participating lender for a written project-cost and fee worksheet tied to the SBA approval date, business activity, property location, and refinancing structure. Reconcile that amount with the sources-and-uses statement, required borrower contribution, and post-closing liquidity. Program eligibility, fee treatment, approval, and final terms remain subject to SBA rules and the participating institutions' review.
Borrowers planning an owner-occupied real-estate, equipment, or eligible refinance project should ask the CDC and lender to calculate all transaction costs and verify whether the project qualifies for the FY2027 waiver before finalizing equity and cash-to-close.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.