Your loan is approved for $500,000. You expect $500,000 in your account. Then the closing statement arrives—and you’re getting $485,000. Where did $15,000 go? SBA loan closing costs surprise borrowers who don’t ask the right questions upfront.
This guide breaks down every fee you’ll encounter when closing SBA financing, so nothing catches you off guard at the closing table.
Standard SBA Loan Fees
SBA loans carry specific fees set by the agency, plus additional costs charged by lenders and third parties. Understanding each category helps you budget accurately.
| Fee Type | Typical Range | Who Charges It | Negotiable? |
|---|---|---|---|
| SBA Guarantee Fee | 0-3.5% | SBA | No |
| Packaging Fee | $2,500-$4,000 | Lender/Broker | Sometimes |
| Origination Fee | 0-1% | Lender | Yes |
| Appraisal | $2,000-$5,000 | Third Party | No |
| Environmental Review | $1,500-$4,000 | Third Party | No |
| Legal/Closing | $1,500-$3,500 | Attorney | Sometimes |
The SBA Guarantee Fee Explained
This fee funds the SBA’s guarantee program. According to current SBA fee schedules, the guarantee fee varies by loan size: loans under $150,000 pay zero upfront fee, loans from $150,001-$700,000 pay 3% of guaranteed portion, loans from $700,001-$1,000,000 pay 3.5% of guaranteed portion, and loans over $1,000,000 pay 3.5% plus 0.25% on amounts exceeding $1M.
The Annual Service Fee
Beyond closing costs, SBA loans carry an ongoing annual service fee of 0.55% on the outstanding guaranteed portion. This is built into your interest rate, not billed separately, but affects your total cost of borrowing.
Real Estate Transactions: Extra Costs
Property purchases add layers of expense. Title insurance, survey costs, recording fees, and property insurance escrows all add up. Budget an additional 2-4% of purchase price for real estate-specific closing costs beyond standard loan fees.
Reducing Your Closing Costs
Some costs are fixed; others have flexibility. Compare lender packaging and origination fees—they vary significantly. The Consumer Financial Protection Bureau recommends getting loan estimates from multiple lenders before committing.
Our financing team provides transparent cost breakdowns upfront—no surprises at closing.
Know Your True Costs Upfront
Get a complete fee breakdown before you commit. We believe in transparency—you should know exactly what closing will cost.
