Colorado Lending Source | Aug. 20, 2018

The Small Business Administration has announced new fees for the SBA 504 and SBA 7(a) loan programs during Fiscal Year 2019 that will be effective October 1, 2018. You can view the SBA Notices for 504 and 7(a) here. Below is a summary of the updated fee details.

SBA 504 loans approved during FY 2019:

  • The guaranty fee has changed from 0% to .50%. The new quote for our total upfront fees will be 2.65% plus any closing costs, a slight increase from 2.15%.
  • The annual service fee will be reduced to .368% from .642%. This lowers the overall effective interest rate.

SBA 504 Debt Refinance loans approved during FY 2019:

  • The upfront guaranty fee for 504 loans has also increased to .50%.
  • The annual service fee will be reduced to .368% with an additional fee of .027% for a total of .395%. This will lower the overall effective interest rate.

SBA 7(a) loans approved during FY 2019 (this also applies to Community Advantage loans, which are capped at $250,000):

Loans of $150,000 or less:

  • SBA Guaranty Fee of 2% on the SBA guaranteed portion (typically 85% of the total loan amount).  The lender can retain 25% of this fee. 

Loans of $150,001 to $700,000:

  • SBA Guaranty Fee of 3% on the SBA guaranteed portion (typically 75% of the total loan amount)  

Loans of $700,001 to $5 million:

  • SBA Guaranty Fee of 3.5% + .25% on guaranteed portion over $1 million, on the SBA guaranteed portion (typically 75% of the total loan amount).

Ongoing (annual service) fee is 55 basis points for all loan amounts

SBA 7(a) fee relief during FY 2019:

SBA 7(a) loans of $150,000 or less located in a SBA defined Rural Area or HUBZone will have the following fee relief:

  • SBA Guaranty Fee of 0.6667% on the SBA guaranteed portion (typically 85% of the total loan amount).  The Lender can retain 0.1667%. 
  • Ongoing (annual service) fee is waived

SBA Express loans to Veteran-owned business:

  • SBA Guaranty Fee of 0%
  • Ongoing (annual service) fee is waived