What are the fees and interest associated with a SBA loan?

What are all the fees and interest rates associated with getting an SBA loan? How are these costs calculated, and do they vary by lender or loan type? Are there any hidden fees, closing costs, or ongoing charges that borrowers should be aware of? For those who have gone through the process, were there any unexpected expenses or tips for keeping costs down? Any insights on how the Prime Rate affects SBA loan interest rates would also be appreciated!

Getting Loans

SBA Advice

Posted by

RLG Express

June 13, 2025

Answered

Interest Rates:

SBA loan interest rates are variable and are typically set at 2.75% to 4.75% above the current Prime Rate.
As of January 2025, the Prime Rate is 7.5%, so SBA loan rates generally range from 10.25% to 12.25% depending on the lender and program.
Rates are adjusted monthly based on changes to the Prime Rate.

Fees:

SBA 7(a) loan guaranty fees returned on March 27, 2025, after a 13-year hiatus.
For loans up to $150,000, the guaranty fee is 2% of the guaranteed portion.
For larger loans, the fee increases in tiers, up to a maximum of 3.75%.
Additional costs may include standard closing costs and possible servicing fees, depending on the lender.

For more details, you can visit the following FastWaySBA articles: