SBA Guaranty Fee Calculator
Estimated SBA Guaranty Fees
What Is an SBA Guaranty Fee Calculator?
An SBA guaranty fee calculator is a tool that estimates the fee charged by the SBA for guaranteeing a portion of your loan. This fee is based on the guaranteed portion of the loan, not the full loan amount.
The calculator helps you understand how much you will pay upfront, what percentage rate applies, and any ongoing servicing fees. It also gives an estimate of possible refunds if you pay off the loan early. This is especially helpful when comparing SBA loan options or planning your borrowing costs.
How the SBA Guaranty Fee Formula Works
The calculator uses a two-step approach. First, it calculates the SBA guaranteed portion. Then, it applies the correct fee rate based on loan type, size, and term.
The guaranty rate depends on the loan:
- 85% for loans up to $150,000
- 75% for loans above $150,000
- 50% for SBA Express loans
The fee rate varies:
- 0% for small loans (≤ $150,000)
- 0.25% for short-term loans (≤ 12 months)
- 3.0% for guaranteed amounts up to $1M
- 3.5% for amounts above $1M
Example: If you borrow $350,000 with a 75% guaranty, the guaranteed amount is $262,500. If the fee rate is 3%, your upfront fee is $7,875.
The calculator also estimates an annual servicing fee of 0.55% and a possible refund if the loan is paid off early. Refunds depend on how much time is left in the loan term.
How to Use the SBA Guaranty Fee Calculator: Step-by-Step
- Enter the total loan amount you plan to borrow.
- Select the loan program type, such as Standard 7(a) or SBA Express.
- Choose the loan maturity period, from short-term to 25 years.
- Indicate whether the loan is new or a refinance.
- Enter your expected payoff time in years for refund estimates.
- Click “Calculate Fee” to see the results instantly.
The results show the guaranteed portion, fee rate, total upfront fee, annual servicing fee, and any estimated refund. Use these numbers to compare loan options or plan your cash flow.
When Should You Use This Calculator?
Before Applying for an SBA Loan
Use the calculator early to understand the real cost of borrowing. Many borrowers focus only on interest rates, but guaranty fees can add thousands to the total cost.
Comparing Loan Options
If you’re choosing between a Standard 7(a) and an Express loan, this tool helps you compare fees quickly. Express loans have lower guaranty rates but different fee structures.
Planning Early Payoff
If you plan to repay your loan early, the calculator estimates how much of the fee you might recover. This can affect your decision on loan terms.
Avoiding Common Mistakes
Many borrowers assume fees apply to the full loan amount. In reality, they apply only to the guaranteed portion. This tool prevents that misunderstanding and gives a more accurate estimate.
Frequently Asked Questions
What is an SBA guaranty fee?
An SBA guaranty fee is a one-time upfront fee charged for the SBA backing part of your loan. It is calculated only on the guaranteed portion, not the full loan amount.
How is the SBA guaranty fee calculated?
The fee is calculated by multiplying the guaranteed portion of the loan by the applicable fee rate. The rate depends on loan size, term, and program type.
Do all SBA loans have guaranty fees?
No, some smaller loans (typically $150,000 or less) may have a 0% guaranty fee. Larger loans usually have tiered fee rates based on size and maturity.
Can I get a refund on SBA guaranty fees?
Yes, partial refunds may be available if you pay off the loan early. The amount depends on how much of the loan term remains at payoff.
What is the SBA annual servicing fee?
The annual servicing fee is typically around 0.55% of the guaranteed portion. It is usually paid by the lender but may be built into your loan costs.
Is the SBA guaranty fee the same as interest?
No, the guaranty fee is a one-time cost for loan backing, while interest is the ongoing cost of borrowing money over time.