On August 29, 2023, the Small Business Administration (SBA) issued Information Notice 5000-848801, outlining changes in fees for all SBA 7(a) loans approved October 1, 2023, through September 30, 2024. The notice announced reduced SBA guarantee fees, also known as upfront fees, for 7(a) loans, resulting in significant cost savings for borrowers.
Except the Export Working Capital Program loans and SBA Express loans made to veteran-owned businesses, the fiscal year 2024 upfront fee, based on gross loan approval amount, including guaranteed and unguaranteed portions, will be:
For loans with a maturity that exceeds 12 months, the Upfront Fees are:
For 7(a) loans with a maturity of 12 months or less (Short-Term Loans), the Upfront Fees are:
Apply online, get qualified for an SBA 7(a) loan in minutes, and access the capital you need without the usual delays.
Reduced guarantee fees for SBA 7(a) loans result in a more favorable financial environment for small businesses because it lowers the overall cost of obtaining a loan. Guarantee fees are typically charged by the SBA as a form of insurance against borrower default. When these fees are reduced, it means that borrowers have to pay less upfront, thus making financing more affordable and accessible.
As an SBA Preferred Lender, we are steadfast in our commitment to providing small businesses with easier access to the capital needed to support their growth, economic development, and sustainability. If you’re interested in applying for an SBA loan, contact a member of our team today!
For more information regarding the fees charged when two or more loans with maturities greater than 12 months are approved within 90 days of each other, and when there is an increase in the original loan approval amount, please refer to Information Notice 5000-848801.
Brana Webb is a versatile marketing professional with a decade of experience leading brand, content, and digital strategies across industries ranging from financial services to consumer goods. With 8+ years of experience driving brand growth and customer engagement across the banking and fintech space, she has developed a strong track record of translating complex ideas into compelling campaigns that resonate with target audiences. In her current role at Grasshopper, she leads strategic marketing initiatives that support product launches, deepen client relationships, and fuel business growth. With a background spanning both in-house and freelance work, Brana brings a thoughtful, creative, and data-informed approach, helping teams connect more meaningfully with their audiences and move faster toward their goals.
