SBA 7(a) Loan: Limits, Guaranty Percentages, Maximum Rates and Fees
SBA’s lender terms page, checked on November 3, 2026, said “Most 7(a) loans have a maximum loan amount of $5 million. However, 7(a) loans made under the SBA Express and Export Express delivery methods have maximum loan amounts of $500,000.” The tables on this page give SBA’s guaranty percentages, the maximum variable interest rates (the prime rate plus a spread, by loan size), the FY 2027 fees and the eligibility basics, each from the SBA document named in its caption.
Maintained by Archie Chang · Reviewed November 3, 2026 · Methodology & sources
How much can be borrowed
Where SBA documents are worded differently, both are shown, each with its date.
| Document | Wording |
|---|---|
| SBA “7(a) loans” page, checked November 3, 2026 | “The maximum loan amount for a 7(a) loan is $5 million.” |
| SBA lender terms page, checked November 3, 2026 | “Most 7(a) loans have a maximum loan amount of $5 million. However, 7(a) loans made under the SBA Express and Export Express delivery methods have maximum loan amounts of $500,000.” |
| SOP 50 10 8.1, effective October 1, 2026 | “The maximum loan amount for any one Standard 7(a) loan is $5,000,000.” “7(a) Small loans have a maximum loan amount of $350,000 per project (including other 7(a) loans made within 90 days).” “The maximum aggregate SBA Express loan amount is $500,000 (gross), inclusive of all outstanding SBA Express, Community Advantage Pilot loans, Community Express, and Patriot Express loans the Applicant and its Affiliates may have. For Community Advantage Small Business Lending Companies (CA SBLCs), the maximum loan amount to any one Borrower is limited to $350,000.7(a) Small loans are not included in this limit.” |
The SOP’s SBA Express sentence prints “$350,000.7(a)” with no space between its two sentences; the quote above copies it as printed.
The terms page also stated the dollar limit on SBA’s exposure:
“SBA’s maximum exposure (i.e., dollars guaranteed) is $3.75 million. However, 7(a) International Trade loans may receive a maximum guaranty of 90% or $4.5 million. The amount guaranteed for working capital for the International Trade loan combined with any other outstanding 7(a) loan for working capital cannot exceed $4 million.”
| Type of 7(a) loan | Loan amount (as printed) | Maximum SBA guarantee % (as printed) |
|---|---|---|
| Standard 7(a) | $350,001 to $5 million | 75% |
| 7(a) small | $350,000 | 85% for loans up to $150,000 and 75% for loans greater than $150,000 |
| SBA Express | $500,000 | 50% |
| Export Express | $500,000 | 90% for loans of $350,000 or less, 75% for loans more than $350,000 |
| Export Working Capital | $5 million | 90% |
| International Trade | $5 million | 90% |
| Manufacturers’ Access to Revolving Credit (MARC) Loans | $5 million | 85% for loans up to $150,000 and 75% for loans greater than $150,000 |
| Working Capital Pilot (WCP) | $5,000,000 | 85% for loans up to $150,000 75% for loans greater than $150,000 |
SBA guaranty percentage
Three documents state the maximum guaranty. Each is shown with its date. SOP 50 10 8.1, Appendix 16 also lists other program-specific guaranty rules (Export Express, Export Working Capital Program and International Trade among them) that this page does not reproduce in full.
“For most 7(a) loan programs, SBA guarantees up to 85% of loans of $150,000 or less, and up to 75% of loans above $150,000. However, SBA provides a 50% guaranty on SBA Express loans. SBA provides a 90% guaranty for Export Express, Export Working Capital Program (EWCP), and International Trade loans.”
“The maximum allowable guarantee percentage on a loan will be determined by the loan amount. Loans of $150,000 or less may receive a maximum guaranty of 85 percent. Loans more than $150,000 may receive a maximum guaranty of 75 percent, except as otherwise authorized by law.”
SOP 50 10 8.1, Appendix 16 (effective October 1, 2026), stated a maximum guaranty amount and percentages, with this lead-in, and, as one of its program-specific rules:
“Lenders must apply the General Requirements below to all 7(a) loan programs unless a Program Specific requirement listed in this Appendix provides otherwise.”
“The maximum guaranty amount is $3,750,000.”
“The maximum guaranty percentage is: […] 85% for loans of $150,000 or less”
“The maximum guaranty percentage is: […] 75% for loans over $150,000”
“The maximum guaranty percentage is: […] For SBA Express loans: 50%.”
“The guaranteed amount of all 7(a) Small and SBA Express loans counts toward the $3,750,000 maximum SBA exposure that may be outstanding for all SBA loans to a Borrower and its affiliates at any one time.”
“Manufacturers (NAICS 31-33): loans less than or equal to $5,000,000, the maximum guaranty amount is $3,750,000.”
“All other eligible industries: loans less than or equal to $2,000,000, the maximum guaranty amount is $1,500,000.”
“For multiple 7(a) loans approved within 90 days of each other, the gross dollar amounts of the loans are combined. If the combined gross amount exceeds $150,000, then the percentage of guaranty on the combined loans must not be more than 75 percent (subject to the $3,750,000 limit).”
The SBA loan calculator applies the 85% and 75% percentages to a loan amount to show the guaranteed portion.
Maturity (loan term)
13 CFR 120.212 and the SBA lender terms page use the same wording. SOP 50 10 8.1 words the limits by use of proceeds and states its own limits, so the three documents are shown, each with its date. Appendix 17 also lists program-specific maturities (SBA Express lines of credit, MARC, CAPLines, Export Express and EWCP) that this page does not reproduce in full; three of them are quoted in the SOP row.
| Document | Wording |
|---|---|
| 13 CFR 120.212 (eCFR, title 13 as of October 30, 2026) | “(a) The shortest appropriate term, depending upon the Borrower's ability to repay;” “(b) Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.” “(c) A maximum of 25 years, including extensions. (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements.)” |
| SBA lender terms page (checked November 3, 2026) | “The shortest appropriate term, depending upon the borrower’s ability to repay;” “Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.” “A maximum of 25 years, including extensions. (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements.)” |
| SOP 50 10 8.1, Appendix 17 (effective October 1, 2026) | “Lenders must apply the General Requirements below to all 7(a) loan programs unless a Program Specific requirement listed in this Appendix provides otherwise.” “7(a) loans must have a stated maturity. The loan term must be the shortest appropriate term based on the use of proceeds and the Borrower's ability to repay.” “Working capital or inventory loans and the financing of intangible assets (including goodwill) must not exceed 10 years.” “Generally, equipment, fixtures, or furniture loans should not exceed 10 years. However, the term may be up to 15 years if the IRS asset class useful life supports the term. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.” “Real estate loans (including acquisition, rehabilitation, renovation, construction, or improvements to leasehold interests in land) must not exceed 25 years, unless a portion of the loan is used for construction or renovation of the real estate. If the use of proceeds on a real estate loan includes construction or renovation, an additional period reasonably necessary for the construction or renovation period may be added to the 25-year maximum maturity.” “For loans to farm enterprises: Where land and structures (including poultry houses) for farming comprise 51% or more of the use of proceeds, the maximum maturity is 20 years. If the use of proceeds secured by real estate and includes construction or renovation, an additional period reasonably necessary for the construction or renovation period may be added to the 20 year maximum maturity.” “For loans to farm enterprises: […] Where machinery and equipment comprise 51% or more of the proceeds, the maximum maturity is the useful life of the machinery and equipment, not to exceed 15 years, plus an additional period reasonably necessary for installation, which may not exceed 12 months.” “Loans for leasehold improvements (except for leasehold interests in land) may not exceed 10 years, plus an additional period reasonably necessary to complete the leasehold improvements, as determined based on the specific nature of the leasehold improvements, but in no case more than 12 months.” “Mixed purpose loans: When 7(a) loan proceeds are used for multiple purposes (land and building, working capital, machinery and equipment), or the refinancing of any of these purposes, the maturity may be a blended maturity or, if 51% or more of the use of the 7(a) loan’s proceeds are for real estate, the maximum maturity may be up to 25 years. For any loan financing a change of ownership, Appendix 15 governs and the 51% real estate maturity option does not apply.” “For loans for all types of changes of ownership: See Appendix 15: 7(a) Changes of Ownership.” “May not exceed 10 years inclusive of a term-out period.” “Revolving loans have a maximum maturity of 20 years.” “General: The maximum maturity of an EWCP loan is 36 months.” |
Maximum interest rates
The lender terms page said rates are negotiated between borrower and lender, subject to SBA maximums. The tables show the variable-rate maximums by loan size as the terms page prints them and as 13 CFR 120.214(d) states them.
“Interest rates for 7(a) loans are negotiated between the borrower and the lender, but are subject to SBA maximums, which are pegged to the prime rate or an optional peg rate. Interest rates may be fixed or variable.”
“(c) Base rate. The base rate will be one of the following: the prime rate or the Optional Peg Rate. The prime rate will be that which is in effect on the first business day of the month, as printed in a national financial newspaper published each business day. SBA may from time to time permit the use of alternative base rate options that are widely adopted for small business commercial lending and will publish notice of such alternative options in the Federal Register. SBA publishes the Optional Peg Rate quarterly in the Federal Register.”
SOP 50 10 8.1, Appendix 18 (effective October 1, 2026), worded the base rates and how the prime rate is read as follows, so both documents are shown:
“There are two acceptable Base Rates: The Prime Rate; or The SBA Optional Peg Rate. There are three acceptable Alternative Base Rate options: Secured Overnight Funding Rate (SOFR); or 5-year Treasury Note Rate; or 10-year Treasury Note Rate.”
“The Prime Rate will be that rate which is in effect on the first business day of the month, as identified in a national financial newspaper or website.”
“The maximum allowable variable interest rates are set forth below, with the initial maximum allowable rate for the loan determined as of the date SBA receives the loan application:”
| Loan amount (SBA terms page) | Maximum rate (SBA terms page) | 13 CFR 120.214(d), eCFR title 13 as of October 30, 2026 | Arithmetic with prime 7.00% |
|---|---|---|---|
| $50,000 or less | Base rate plus 6.5% | “(1) For all 7(a) loans of $50,000 and less, the interest rate shall not exceed six and a half (6.5) percentage points over the base rate;” | 7.00% + 6.5 percentage points = 13.50% |
| $50,001 to $250,000 | Base rate plus 6.0% | “(2) For all 7(a) loans of more than $50,000 and up to and including $250,000, the maximum interest rate shall not exceed six (6.0) percentage points over the base rate;” | 7.00% + 6.0 percentage points = 13.00% |
| $250,001 to $350,000 | Base rate plus 4.5% | “(3) For all 7(a) loans of more than $250,000 and up to and including $350,000, the maximum interest rate shall not exceed four and a half (4.5) percentage points over the base rate; and” | 7.00% + 4.5 percentage points = 11.50% |
| Greater than $350,000 | Base rate plus 3.0% | “(4) For all 7(a) loans of more than $350,000, the maximum interest rate shall not exceed three (3.0) percentage points over the base rate.” | 7.00% + 3.0 percentage points = 10.00% |
The arithmetic column is ours: it adds each spread to 7.00%, the Federal Reserve H.15 bank prime loan rate for the observation of October 28, 2026, read from the data behind our prime rate page. It is an illustration, not a maximum SBA has set for any loan: 13 CFR 120.214(c) makes the base rate either the prime rate in effect on the first business day of the month, as printed in a national financial newspaper, or the Optional Peg Rate, and the initial maximum is set as of the date SBA receives the application. The same paragraph says SBA may from time to time permit alternative base rate options; SOP 50 10 8.1, Appendix 18, lists SOFR, the 5-year Treasury Note rate and the 10-year Treasury Note rate (quoted above).The arithmetic column uses prime only.
For fixed rates, the SBA lender terms page said:
“SBA publishes the maximum fixed interest rates on SBA’s FTA wiki.”
“(a) Fixed Rates for Guaranteed Loans. A loan may have a reasonable fixed interest rate. SBA periodically publishes the maximum allowable rate in the Federal Register.”
For Export Working Capital Program loans, the terms page said:
“Lenders and borrowers negotiate the interest rate and there is no SBA maximum interest rate limit.”
SOP 50 10 8.1, Appendix 18, described how SBA sets the maximum fixed rate:
“SBA will periodically publish the maximum allowable fixed interest rate in the Federal Register. The maximum allowable fixed interest rate will be the Prime rate in effect on the first business day of the month, plus an allowable spread over Prime, as set forth in the most recent Federal Register Notice. For a listing of the current maximum allowable fixed interest rates, go to SBA’s Fiscal Transfer Agent (FTA) Wiki. The maximum allowable fixed rate may only be used by a Lender if such rate will be in effect for the entire term of the loan, without adjustment or reset. Otherwise, the maximum rates for variable rate loans will apply.”
The text of 13 CFR 120.213 in the eCFR (title 13 as of October 30, 2026) states no rate, so this page shows no fixed-rate maximum.
Fees
The SBA lender terms page, checked on November 3, 2026, said SBA publishes the fees each fiscal year:
“SBA publishes the amount of the Upfront Fee and the Lender’s Annual Service Fee each fiscal year for all loans approved during that year through an Information Notice.”
“The following fees are effective for all 7(a) loans approved on October 1, 2026, through and including September 30, 2027.”
“All loan amounts are based on the gross loan approval amount, including the SBA-guaranteed and unguaranteed portions.”
“Except for Export Working Capital Program (EWCP) loans, Working Capital Program (WCP) loans, and SBA Express loans made to veteran-owned businesses, the adjusted FY 2027 Upfront Fee, based on gross loan approval amount, including SBA-guaranteed and unguaranteed portions, will be […]”
“For loans of $700,000 or less, to manufacturers (NAICS sectors 31-33), food supply chain (NAICS Codes […]), and businesses that are located in a rural area, the Upfront fee is 0%.”
NAICS codes the notice lists for food supply chain in that sentence: 1111, 1112, 1113, 1121, 1122, 1123, 1124, 1125, 1129, 1141, 1151, 1152, 423820, 4244, 4245, 424910, 445110, 484220 (footnote 1), 484230, 493120, 493130.
“NAICS 484220 and 484230 are limited to refrigerated and frozen trucking, farm products, grain products, and livestock.”
The upfront fee by loan size, as the notice words it and as 13 CFR 120.220(a)(1) words the maximum:
| Loan size | SBA Information Notice 5000-881797 (FY 2027), effective October 1, 2026 | 13 CFR 120.220(a)(1), eCFR title 13 as of October 30, 2026 |
|---|---|---|
| Loans of $150,000 or less (maturity of more than 12 months) | “For loans of $150,000 or less: 2% of the guaranteed portion of the loan. The Lender may retain no more than 25% of the fee (i.e., at least 1.5% must be remitted to SBA).” | “(i) Not more than 2 percent of the guaranteed portion of a loan if the total amount of the loan is not more than $150,000;” |
| Loans of $150,001 to $700,000 (maturity of more than 12 months) | “For loans of $150,001 to $700,000: 3% of the guaranteed portion of the loan.” | “(ii) Not more than 3 percent of the guaranteed portion of a loan if the total amount of the loan is more than $150,000 but not more than $700,000;” |
| Loans of $700,001 to $5,000,000 (maturity of more than 12 months) | “For loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion of the loan up to and including $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000.” | “(iii) Except as provided in paragraph (a)(1)(iv) of this section, not more than 3.5 percent of the guaranteed portion of a loan if the total amount of the loan is more than $700,000; and” |
| Maturity of 12 months or less | “For loans with a maturity of 12 months or less (Short-term loans): 0.25% of the guaranteed portion of the loan.” | “Except to the extent paragraph (a)(2) of this section applies, for a loan with a maturity of twelve (12) months or less, the guarantee fee which the Lender must pay to SBA is one-quarter (1⁄4) of one percent of the guaranteed portion of the loan.” |
Over $1,000,000 the two documents differ, so both are shown. 13 CFR 120.220(a)(1)(iv) adds 0.25 percent of the guaranteed portion when the total amount of the loan is more than $1,000,000; the notice charges 3.75% on the guaranteed portion over $1,000,000. The SOP 50 10 8.1 fee chart (effective October 1, 2026) is shown in full, then the SOP’s notes to it:
“(iv) An additional 0.25 percent of the guaranteed portion of a loan if the total amount of the loan is more than $1,000,000.”
“The total loan amount determines the percentage that is used to calculate this fee. However, the Upfront Fee is based on the guaranteed portion of the loan and not the total loan amount.”
| Gross Loan Size | Maximum Fees (See Note 1) |
|---|---|
| Loans of $150,000 or less (Maturity more than 12 months) (See Note 2) | 2% of guaranteed portion 7(a) Lender is authorized to retain 25% of the fee. |
| $150,001 to $700,000 (Maturity more than 12 months) | 3% of guaranteed portion |
| $700,001 to $5,000,000 (Maturity more than 12 months) (See Note 3) | 3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of the guaranteed portion over $1,000,000 |
| Short-Term Loans – up to $5 million (Maturity of 12 months or less) | 0.25% of the guaranteed portion |
“Note 1: The above table describes the maximum Upfront Fees as authorized by 13 CFR § 120.220. However, SBA may announce temporary changes for a specific fiscal year through an Information Notice.”
“Note 2: For example, the Upfront Fee on a $100,000 loan with an 85% guaranty would be 2% of $85,000 or $1,700, of which the 7(a) Lender may retain $425.”
“Note 3: For example, the Upfront Fee on a $5,000,000 loan with a 75% guaranty ($3.75 million guaranteed portion) would be 3.5% of $1,000,000 ($35,000) PLUS 3.75% of $2,750,000 ($103,125), which totals $138,125.”
The lender’s annual service fee and who pays the fees:
“The adjusted FY 2027 Lender’s Annual Service Fee will be 0.55% of the outstanding balance of the guaranteed portion of each loan. This includes 7(a) Working Capital Pilot (WCP) loans.”
“Lenders may not pass the Lender’s Annual Service Fee on to the Borrower.”
“(1) In general. Except to the extent paragraph (f)(2) of this section applies, the lender shall pay SBA an annual service fee in an amount not to exceed 0.55 percent of the outstanding balance of the guaranteed portion of each loan. The service fee cannot be charged to the Borrower.”
“Lenders must pay an Upfront Fee (also known as an SBA Guaranty Fee) for each loan guaranteed under the 7(a) program but are permitted to pass the cost of the fee on to the borrower.”
“Lenders must pay the Lender’s Annual Service Fee (also known as the SBA On-Going Guaranty Fee) based on the outstanding principal balance of the guaranteed portion of a loan at the time of SBA loan approval. This fee cannot be charged to the borrower.”
“Upfront Fee calculation for multiple 7(a) loans within 90 Days: The applicable Upfront Fee for the subsequent loan(s) will equal the amount of the fee that would have been charged had the loans been combined, less the fee that was paid or is due to be paid on the first loan approved. The fee will never be a negative amount.”
To work out the upfront fee for a loan size and term, use the SBA loan calculator.
Eligibility basics
| SBA “7(a) loans” page, checked November 3, 2026 |
|---|
| Be an operating business |
| Operate for profit |
| Be located in the U.S. |
| Be small under SBA size requirements |
| Not be a type of ineligible business |
| Not be able to obtain the desired credit on reasonable terms from non-federal, non-state, and non-local government sources |
| Be creditworthy and demonstrate a reasonable ability to repay the loan |
| Requirement | Wording |
|---|---|
| Operating business | “13 CFR § 120.100(a) The Applicant must be an Operating Business (except for Eligible Passive Companies (EPCs)).” |
| Organized for profit | “13 CFR § 120.100(b) All Applicants must be organized for profit. Non-profit businesses are not eligible for SBA business loan assistance. For-profit subsidiaries of non-profits may be eligible.” |
| Located in the United States | “13 CFR § 120.100(c) The Applicant must be located in the United States (including its territories and possessions).” |
| Small under SBA size requirements | “The Applicant must qualify as small under 13 CFR § 120.100(d) and SBA Size Requirements (13 CFR Part 121) (including affiliates). The Applicant may qualify under either the Industry Size Standards or the Alternative Size Standard.” |
Frequently asked questions
What is the maximum SBA 7(a) loan amount?
SBA’s lender terms page, checked on November 3, 2026, said “Most 7(a) loans have a maximum loan amount of $5 million. However, 7(a) loans made under the SBA Express and Export Express delivery methods have maximum loan amounts of $500,000.” SBA’s 7(a) loans page, checked on November 3, 2026, said “The maximum loan amount for a 7(a) loan is $5 million.” SOP 50 10 8.1 (effective October 1, 2026) says “The maximum loan amount for any one Standard 7(a) loan is $5,000,000.”
What percentage of an SBA 7(a) loan does SBA guarantee?
SBA’s lender terms page, checked on November 3, 2026, said “For most 7(a) loan programs, SBA guarantees up to 85% of loans of $150,000 or less, and up to 75% of loans above $150,000. However, SBA provides a 50% guaranty on SBA Express loans. SBA provides a 90% guaranty for Export Express, Export Working Capital Program (EWCP), and International Trade loans.” 13 CFR 120.210 (eCFR, title 13 as of October 30, 2026) says “The maximum allowable guarantee percentage on a loan will be determined by the loan amount. Loans of $150,000 or less may receive a maximum guaranty of 85 percent. Loans more than $150,000 may receive a maximum guaranty of 75 percent, except as otherwise authorized by law.” SOP 50 10 8.1 (effective October 1, 2026) adds “For multiple 7(a) loans approved within 90 days of each other, the gross dollar amounts of the loans are combined. If the combined gross amount exceeds $150,000, then the percentage of guaranty on the combined loans must not be more than 75 percent (subject to the $3,750,000 limit).”
What is the maximum interest rate on an SBA 7(a) loan?
SBA’s lender terms page, checked on November 3, 2026, said “Interest rates for 7(a) loans are negotiated between the borrower and the lender, but are subject to SBA maximums, which are pegged to the prime rate or an optional peg rate. Interest rates may be fixed or variable.” It also said “SBA publishes the maximum fixed interest rates on SBA’s FTA wiki.” For variable rates, 13 CFR 120.214(d) (eCFR, title 13 as of October 30, 2026) sets the maximum with “the initial maximum allowable rate for the loan determined as of the date SBA receives the loan application”: “(1) For all 7(a) loans of $50,000 and less, the interest rate shall not exceed six and a half (6.5) percentage points over the base rate;” “(2) For all 7(a) loans of more than $50,000 and up to and including $250,000, the maximum interest rate shall not exceed six (6.0) percentage points over the base rate;” “(3) For all 7(a) loans of more than $250,000 and up to and including $350,000, the maximum interest rate shall not exceed four and a half (4.5) percentage points over the base rate; and” “(4) For all 7(a) loans of more than $350,000, the maximum interest rate shall not exceed three (3.0) percentage points over the base rate.” Paragraph (c) of that regulation says “(c) Base rate. The base rate will be one of the following: the prime rate or the Optional Peg Rate. The prime rate will be that which is in effect on the first business day of the month, as printed in a national financial newspaper published each business day. SBA may from time to time permit the use of alternative base rate options that are widely adopted for small business commercial lending and will publish notice of such alternative options in the Federal Register. SBA publishes the Optional Peg Rate quarterly in the Federal Register.”
What fees does an SBA 7(a) loan have?
SBA Information Notice 5000-881797 (FY 2027), effective October 1, 2026, said “The following fees are effective for all 7(a) loans approved on October 1, 2026, through and including September 30, 2027.” It said “Except for Export Working Capital Program (EWCP) loans, Working Capital Program (WCP) loans, and SBA Express loans made to veteran-owned businesses, the adjusted FY 2027 Upfront Fee, based on gross loan approval amount, including SBA-guaranteed and unguaranteed portions, will be […]” “For loans of $700,000 or less, to manufacturers (NAICS sectors 31-33), food supply chain (NAICS Codes […]), and businesses that are located in a rural area, the Upfront fee is 0%.” NAICS codes the notice lists for food supply chain in that sentence: 1111, 1112, 1113, 1121, 1122, 1123, 1124, 1125, 1129, 1141, 1151, 1152, 423820, 4244, 4245, 424910, 445110, 484220 (footnote 1), 484230, 493120, 493130. “NAICS 484220 and 484230 are limited to refrigerated and frozen trucking, farm products, grain products, and livestock.” For loans with a maturity that exceeds 12 months, it said “For loans of $150,000 or less: 2% of the guaranteed portion of the loan. The Lender may retain no more than 25% of the fee (i.e., at least 1.5% must be remitted to SBA).” “For loans of $150,001 to $700,000: 3% of the guaranteed portion of the loan.” “For loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion of the loan up to and including $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000.” For short-term loans it said “For loans with a maturity of 12 months or less (Short-term loans): 0.25% of the guaranteed portion of the loan.” On the lender’s annual service fee it said “The adjusted FY 2027 Lender’s Annual Service Fee will be 0.55% of the outstanding balance of the guaranteed portion of each loan. This includes 7(a) Working Capital Pilot (WCP) loans.”
Can the lender pass the SBA fee on to the borrower?
SBA’s lender terms page, checked on November 3, 2026, said “Lenders must pay an Upfront Fee (also known as an SBA Guaranty Fee) for each loan guaranteed under the 7(a) program but are permitted to pass the cost of the fee on to the borrower.” On the Lender’s Annual Service Fee it said “Lenders must pay the Lender’s Annual Service Fee (also known as the SBA On-Going Guaranty Fee) based on the outstanding principal balance of the guaranteed portion of a loan at the time of SBA loan approval. This fee cannot be charged to the borrower.” SBA Information Notice 5000-881797 (FY 2027), effective October 1, 2026, said “Lenders may not pass the Lender’s Annual Service Fee on to the Borrower.” 13 CFR 120.220(b) (eCFR, title 13 as of October 30, 2026) says “For a loan with a maturity in excess of twelve (12) months, the Lender must pay the guaranty fee to SBA electronically within 90 days after SBA gives its loan approval. The Lender may charge the Borrower the fee after the Lender has made the first disbursement of the loan. The Borrower may use the loan proceeds to pay the guaranty fee. However, the first disbursement must not be made solely or primarily to pay the guaranty fee.”
How long can an SBA 7(a) loan term be?
SBA’s lender terms page, checked on November 3, 2026, said the term of a 7(a) loan will be, among other limits, “The shortest appropriate term, depending upon the borrower’s ability to repay;” “Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.” and “A maximum of 25 years, including extensions. (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements.)” SOP 50 10 8.1 (effective October 1, 2026) words the limits by use, in Appendix 17, among other limits: “7(a) loans must have a stated maturity. The loan term must be the shortest appropriate term based on the use of proceeds and the Borrower's ability to repay.” “Working capital or inventory loans and the financing of intangible assets (including goodwill) must not exceed 10 years.” “Generally, equipment, fixtures, or furniture loans should not exceed 10 years. However, the term may be up to 15 years if the IRS asset class useful life supports the term. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.” “Real estate loans (including acquisition, rehabilitation, renovation, construction, or improvements to leasehold interests in land) must not exceed 25 years, unless a portion of the loan is used for construction or renovation of the real estate. If the use of proceeds on a real estate loan includes construction or renovation, an additional period reasonably necessary for the construction or renovation period may be added to the 25-year maximum maturity.” “For loans to farm enterprises: Where land and structures (including poultry houses) for farming comprise 51% or more of the use of proceeds, the maximum maturity is 20 years. If the use of proceeds secured by real estate and includes construction or renovation, an additional period reasonably necessary for the construction or renovation period may be added to the 20 year maximum maturity.” “For loans to farm enterprises: […] Where machinery and equipment comprise 51% or more of the proceeds, the maximum maturity is the useful life of the machinery and equipment, not to exceed 15 years, plus an additional period reasonably necessary for installation, which may not exceed 12 months.”
Who is eligible for an SBA 7(a) loan?
SBA’s 7(a) loans page, checked on November 3, 2026, said businesses must “Be an operating business”, “Operate for profit”, “Be located in the U.S.”, “Be small under SBA size requirements”, “Not be a type of ineligible business”, “Not be able to obtain the desired credit on reasonable terms from non-federal, non-state, and non-local government sources”, and “Be creditworthy and demonstrate a reasonable ability to repay the loan”. SOP 50 10 8.1 (effective October 1, 2026) says “13 CFR § 120.100(b) All Applicants must be organized for profit. Non-profit businesses are not eligible for SBA business loan assistance. For-profit subsidiaries of non-profits may be eligible.”
Related pages
Sources
- SBA, “7(a) loans”, checked November 3, 2026: https://www.sba.gov/loans/7a-loans/
- SBA, lender terms page (7(a) loan program: types of 7(a) loans, loan amounts, guaranty, maturity, interest rates, fees), checked November 3, 2026: https://www.sba.gov/sba-lenders/#7a-terms
- SBA, SOP 50 10 8.1, Lender and Development Company Loan Programs, published September 25, 2026, effective October 1, 2026 (posted by SBA as a Word .docx file; quotes come from a text conversion of that file): https://legacy.sba.gov/document/sop-50-10-lender-development-company-loan-programs
- SBA, Information Notice 5000-881797, “7(a) Fees Effective October 1, 2026 for Fiscal Year 2027 and 90-Day Rule Clarification”, published September 3, 2026: https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees
- eCFR, 13 CFR 120.210, What percentage of a loan may SBA guarantee?: https://www.ecfr.gov/current/title-13/section-120.210
- eCFR, 13 CFR 120.212, What limits are there on loan maturities?: https://www.ecfr.gov/current/title-13/section-120.212
- eCFR, 13 CFR 120.213, What fixed interest rates may a Lender charge?: https://www.ecfr.gov/current/title-13/section-120.213
- eCFR, 13 CFR 120.214, What conditions apply for variable interest rates?: https://www.ecfr.gov/current/title-13/section-120.214
- eCFR, 13 CFR 120.220, Fees that Lender pays SBA: https://www.ecfr.gov/current/title-13/section-120.220
- eCFR, 13 CFR 120.221, Fees and expenses that the Lender may collect from a loan applicant or Borrower: https://www.ecfr.gov/current/title-13/section-120.221
- Federal Reserve, H.15 Selected Interest Rates (bank prime loan rate): https://www.federalreserve.gov/releases/h15/
Reviewed November 3, 2026. Quotes are copied from the documents as they were when we checked on November 3, 2026 (the eCFR: title 13 as of October 30, 2026). Where SBA documents are worded differently, both are shown with their dates. FedRateCalc is not affiliated with the U.S. Small Business Administration; SBA.gov and the eCFR are authoritative.