SBA 7(A) LENDING · SEPTEMBER 7, 2026
SBA Sets FY2027 7(a) Fees and Targeted Upfront-Fee Relief
The SBA's September 3 notice sets FY2027 7(a) fees effective October 1, including a 0.55% lender annual service fee and a zero upfront fee for qualifying loans of $700,000 or less to specified manufacturers, food-supply-chain businesses, and rural businesses.
What the September 3 notice establishes
SBA Information Notice 5000-881797 applies to 7(a) loans approved from October 1, 2026, through September 30, 2027. It sets the lender's annual service fee at 0.55% of the outstanding guaranteed portion, including Working Capital Pilot loans, and states that lenders may not pass that annual service fee to borrowers. The notice separately establishes upfront guaranty fees paid in connection with loan approval.
- 01Effective October 1
- 02Targeted upfront-fee exceptions
- 03Confirm the lender calculation
Upfront fees depend on size, maturity, and eligibility
For qualifying gross loan approvals of $700,000 or less to businesses in specified manufacturing sectors, designated food-supply-chain industries, or rural areas, the FY2027 upfront fee is 0%. Other loans generally follow stated tiers: for maturities longer than 12 months, 2% of the guaranteed portion at $150,000 or less, 3% from $150,001 through $700,000, and a graduated 3.5% and 3.75% calculation above $700,000. Short-term loans generally carry a 0.25% fee. The notice also provides specialized schedules for Export Working Capital and Working Capital Pilot loans and continues a $0 upfront fee for qualifying SBA Express loans to veteran-owned businesses.
Practical borrower takeaway
Ask the participating lender for a written fee calculation tied to the gross approval amount, guaranteed portion, maturity, approval date, and applicable exception. A business should not assume it qualifies merely because it operates near manufacturing, food, trucking, or a rural market; the notice uses specific industry and eligibility definitions. Reflect any borrower-payable upfront fee in the sources-and-uses statement, and preserve enough liquidity for other closing costs and reserves. Program eligibility and final treatment remain subject to SBA rules and lender review.
Borrowers should ask a participating lender to calculate the fee from the gross approval amount and verify whether the business, loan size, maturity, ownership, and timing satisfy any FY2027 exception before treating fee relief as part of the closing budget.
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.