The quick read: For fiscal year 2027, SBA kept the main 7(a) fees where they were and trimmed the 504 annual fee. SBA Information Notice 5000-881797, effective October 1, 2026, keeps the 7(a) Lender's Annual Service Fee at 0.55% and the upfront fee tiers at 2%, 3% and 3.5% plus 3.75% of the guaranteed portion, but moves the 0% upfront fee relief from manufacturer loans of $950,000 or less to loans of $700,000 or less for manufacturers, listed food supply chain businesses and businesses located in a rural area. SBA Information Notice 5000-881796, also effective October 1, 2026, keeps the 504 upfront guaranty fee at 0.50% and cuts the annual service fee from 0.209% to 0.203%, while widening the 504 fee waiver from manufacturers to the same three groups. Both notices cover loans approved October 1, 2026 through September 30, 2027.
What are the SBA 7(a) and 504 loan fees for fiscal year 2027?
For loans approved from October 1, 2026 through September 30, 2027, SBA sets the 7(a) annual service fee at 0.55% and upfront fees of 2% to 3.75% of the guaranteed portion, and sets the 504 upfront guaranty fee at 0.50% and the 504 annual service fee at 0.203%, according to SBA's two FY2027 information notices published September 3, 2026.
Both notices print the same dates, and the FY2026 notices they replace print different ones:
7(a) FY2027, Information Notice 5000-881797: effective October 1, 2026; publication September 3, 2026; expires 10/1/27 504 FY2027, Information Notice 5000-881796: effective October 1, 2026; publication September 3, 2026; expires 10/1/27 7(a) FY2026, Information Notice 5000-872051: effective August 28, 2025, for fees effective October 1, 2025 504 FY2026, Information Notice 5000-871532: effective August 28, 2025
Each notice applies by approval date, not closing date. The FY2027 7(a) notice says its fees are effective for all 7(a) loans approved on October 1, 2026, through and including September 30, 2027, and the 504 notice uses the same window. A loan approved on September 30, 2026 carries the FY2026 schedule even if it closes in November.
| Fee | FY2026 | FY2027 | Who pays | Change |
|---|---|---|---|---|
| Fee 7(a) Lender's Annual Service Fee | FY2026 0.55% of guaranteed balance | FY2027 0.55% of guaranteed balance | Who pays Lender; may not pass to borrower | Change None |
| Fee 7(a) upfront, $150,000 or less | FY2026 2% of guaranteed portion | FY2027 2% of guaranteed portion | Who pays Lender pays SBA; may pass to borrower | Change None |
| Fee 7(a) upfront, $150,001 to $700,000 | FY2026 3% | FY2027 3% | Who pays Lender pays SBA; may pass to borrower | Change None |
| Fee 7(a) upfront, $700,001 to $5,000,000 | FY2026 3.5% to $1,000,000, 3.75% above | FY2027 3.5% to $1,000,000, 3.75% above | Who pays Lender pays SBA; may pass to borrower | Change None |
| Fee 7(a) upfront, 12 months or less | FY2026 0.25% | FY2027 0.25% | Who pays Lender pays SBA; may pass to borrower | Change None |
| Fee 7(a) 0% upfront relief | FY2026 Manufacturers, $950,000 or less | FY2027 Manufacturers, food supply chain, rural, $700,000 or less | Who pays Borrower benefits | Change Lower cap, wider group |
| Fee 504 upfront guaranty fee | FY2026 0.50% | FY2027 0.50% | Who pays 504 borrower | Change None |
| Fee 504 annual service fee | FY2026 0.209% | FY2027 0.203% | Who pays 504 borrower | Change Down 0.6 basis points |
What changed in the 7(a) fees from FY2026 to FY2027?
Only the 0% upfront fee relief changed in the 7(a) program for FY2027: SBA lowered the loan-size cap from $950,000 to $700,000 and widened eligibility from manufacturers alone to manufacturers, listed food supply chain businesses and businesses located in a rural area, while every other 7(a) fee stayed the same.
The FY2026 notice gave a 0% upfront fee to loans to manufacturers (NAICS sectors 31-33) of $950,000 or less, and said that relief did not apply to MARC loans. The FY2027 notice gives a 0% upfront fee to loans of $700,000 or less to manufacturers (NAICS sectors 31-33), to a list of food supply chain NAICS codes printed in the notice, and to businesses located in a rural area. The notice limits trucking codes 484220 and 484230 to refrigerated and frozen trucking, farm products, grain products and livestock.
The change cuts both ways. A rural retailer or a food distributor borrowing $700,000 or less now pays no upfront fee where it paid the full tier last year. A manufacturer borrowing between $700,001 and $950,000 lost its relief and now pays the standard tier. The rest of the notice carries over: the 90-day rule that combines two or more 7(a) loans approved for one applicant and its affiliates within 90 days for the fee calculation, the ban on splitting loans to avoid fees, and the upfront fee of zero on SBA Express loans to businesses owned and controlled by a veteran or a veteran's spouse.
How do 7(a) upfront and annual fees scale with loan size and maturity?
The 7(a) upfront fee is set by the gross loan amount and charged on the guaranteed portion, rising from 2% on loans of $150,000 or less to 3% up to $700,000 and 3.5% plus 3.75% above that, while loans of 12 months or less pay 0.25% and the annual fee stays at 0.55%.
Three mechanics drive the bill. First, the tier is chosen by gross loan approval amount, including both the guaranteed and unguaranteed portions, but the percentage is applied to the guaranteed portion only. Second, the top tier is split: 3.5% applies to the guaranteed portion up to and including $1,000,000 and 3.75% to the guaranteed portion above $1,000,000. Third, maturity matters: the tiers apply to loans with a maturity that exceeds 12 months, and short-term loans pay 0.25%.
Who pays differs by fee. SBA's lender page says lenders must pay the Upfront Fee for each 7(a) loan but are permitted to pass the cost on to the borrower, and the FY2027 notice adds that on loans of $150,000 or less the lender may retain no more than 25% of the fee. The Lender's Annual Service Fee runs on the outstanding balance of the guaranteed portion, and the notice says lenders may not pass it on to the borrower. Working capital and export working capital loans use separate maturity-based upfront fees from 0.25% to 1.35% that this page does not cover.
The guaranteed portion itself depends on loan size. SBA's lender page lists a maximum SBA guarantee of 75% for standard 7(a) loans of $350,001 to $5 million, and 85% for loans up to $150,000 and 75% above that for 7(a) small loans. For rates rather than fees, see our SBA 504 and 7(a) loan rates page.
Which 504 fees changed, and who pays each one?
The 504 annual service fee is the one SBA-set 504 fee that moved for FY2027, falling from 0.209% to 0.203% of the outstanding loan balance, while the 0.50% upfront guaranty fee held and the waiver widened from manufacturers to manufacturers, food supply chain businesses and rural-area businesses, per SBA's 504 notices.
SBA's 504 notices describe these as fees payable to SBA by 504 borrowers. They are charged on the CDC loan, the junior lien backed by SBA's debenture, not on the bank's first mortgage. SBA's regulation at 13 CFR 120.971(d)(1) says SBA charges a 0.5 percent guarantee fee on the Debenture. The first-lien lender's side is handled separately: 13 CFR 120.972(a) says SBA collects a one-time fee of 50 basis points on the Third Party Lender's participation when that lender sits senior to SBA in the project. Neither FY notice mentions that participation fee, so treat it as unchanged and outside the notices' waiver.
504 upfront guaranty fee, FY2026 and FY2027 (SBA notices): 0.50%, charged on the debenture under 13 CFR 120.971(d)(1) 504 annual service fee, FY2026 (Notice 5000-871532): 0.209% of the outstanding balance of the loan 504 annual service fee, FY2027 (Notice 5000-881796): 0.203% of the outstanding balance of the loan 504 Debt Refinance without Expansion annual fee, FY2026: 0.2115% (0.209% plus 0.0025%) 504 Debt Refinance without Expansion annual fee, FY2027: 0.204% (0.203% plus 0.001%) 504 waiver, FY2026: manufacturers (NAICS 31-33), upfront and annual fees waived 504 waiver, FY2027: manufacturers, listed food supply chain codes and businesses located in a rural area, upfront and annual fees waived Third Party Lender participation fee (13 CFR 120.972(a)): one-time 50 basis points on the senior lender's participation
The FY2027 waiver covers loans made under the 504 Debt Refinance with Expansion option and the 504 Debt Refinance without Expansion Program, the notice says. Other costs sit with the CDC rather than SBA: 13 CFR 120.971(a) lets a CDC charge a processing fee of up to 1.5 percent of net debenture proceeds and a servicing fee of at least 0.625 percent a year. For how the two programs compare on total cost, see our SBA 504 vs 7(a) comparison.
How much does the FY2027 change move the fee on an illustrative purchase?
On an illustrative $2,000,000 owner-user building, the FY2027 change saves a non-exempt 504 borrower about $48 in the first year of SBA's annual fee and leaves the 7(a) upfront fee unchanged, but it costs a manufacturer borrowing $900,000 under 7(a) a $23,625 upfront fee it would not have paid in FY2026.
Every input below is an assumption chosen to show the arithmetic, not a quote or a typical deal. The fee rates come from the SBA notices; the 50% first lien, 40% CDC debenture and 10% equity structure is the typical split SBA's lender page describes; the 75% guaranty is SBA's listed maximum for standard 7(a) loans over $350,000. First-year annual fees use the starting balance (our arithmetic).
Illustrative 504 purchase, $2,000,000 building, not a manufacturer and not rural:
First-lien loan, 50%: $1,000,000 CDC debenture, 40%: $800,000 Borrower equity, 10%: $200,000 SBA upfront guaranty fee at 0.50% on the debenture, FY2026 and FY2027: $4,000 SBA annual service fee, first year at 0.209% (FY2026): $1,672 SBA annual service fee, first year at 0.203% (FY2027): $1,624 Third Party Lender participation fee at 50 basis points on $1,000,000: $5,000
If the same buyer runs a rural business or a listed food supply chain business, the FY2027 notice waives the $4,000 upfront fee and the annual service fee on the debenture loan; in FY2026 only a manufacturer had that waiver.
Illustrative 7(a) loans, upfront fee only, 75% guaranteed:
$1,500,000 loan, not exempt, guaranteed portion $1,125,000: $39,687.50 in both years (3.5% on $1,000,000 plus 3.75% on $125,000) $900,000 loan to a manufacturer, guaranteed portion $675,000: zero in FY2026; $23,625 in FY2027 at 3.5% $650,000 loan to a rural retailer, guaranteed portion $487,500: $14,625 in FY2026 at 3%; zero in FY2027
What will an SBA loan cost you all-in on a building you buy this year?
An SBA loan's all-in cost on a building bought this year is the FY2027 SBA fees above plus the lender's or CDC's own fees, the interest rate and closing costs, so the cheapest program depends on your industry, location and loan size, and the reliable way to find it is to price both programs side by side.
Here is how to get that comparison, with the brokerage route first because it is our recommendation as the publisher of this page, for the reasons given:
- Brokerage route (YieldStack, our pick): YieldStack is an AI-native commercial mortgage brokerage that arranges financing for commercial real estate investors. Software matches the deal against a catalog of 20,000+ loan programs, which is a count of programs, not of lenders, and human brokers structure the request, check which FY2027 fee relief your industry and location qualify for, negotiate for the borrower and carry the deal toward closing. Speed: median first offer in under an hour, from an institutional lender. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
- One SBA lender or one CDC, approached directly: you see that institution's pricing for its own program, and you have to run the 7(a) and 504 comparison yourself.
- Your current bank: useful if it already holds your accounts, but it may offer only one of the two programs, and its quote may not show which FY2027 fee relief your business qualifies for.
Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
What to send so both programs can be priced:
- The purchase contract or letter of intent, with the price and any renovation budget
- Your NAICS code and the property address, which decide the FY2027 fee relief
- Business tax returns and interim financial statements
- How much equity you can put in, and whether you will occupy the building
Our SBA loan page covers the programs in more detail. When the package is ready, send the deal for review.
The bottom line
For loans approved October 1, 2026 through September 30, 2027, SBA kept the 7(a) annual service fee at 0.55% and the upfront tiers unchanged, cut the 504 annual service fee to 0.203% from 0.209%, and kept the 504 upfront guaranty fee at 0.50%. The real change is who pays nothing upfront: rural and listed food supply chain borrowers gained relief in both programs, and manufacturers borrowing more than $700,000 under 7(a) lost it. Check your NAICS code and address before you pick a program.