The U.S. Small Business Administration (SBA) has issued notices announcing the fees for 504 Loans approved during FY2026, including the upfront guaranty fee and the annual service fee (also known as the “ongoing guaranty fee”). SBA annually sets a combination of the upfront guaranty fee and the annual service fee (also known as the “ongoing guaranty fee”) to cover the estimated subsidy costs of the 504 loan program.
The following fees are effective for 504 loans approved October 1, 2025, through September 30, 2026:
Manufacturers:
For 504 loans to manufacturers (NAICS sectors 31-33), including loans made under 504 Debt Refinance with and without Expansion, the upfront guaranty fee and the annual service fee will be waived.
All Other Borrowers:
For all 504 loans (other than 504 loans approved under the 504 Debt Refinance Without Expansion Program):
- The upfront guaranty fee will be 0.50% (50 basis points)
- An increase from 0% (0 basis points) in FY 2025
- The annual service fee will be 0.209% (20.9 basis points) of the outstanding balance of the loan
- A decrease from 0.331% (33.1 basis points) in FY 2025
For 504 Loans approved under the 504 Debt Refinance Without Expansion Program:
- The upfront guaranty fee will be 0.50% (50 basis points)
- An increase from 0% (0 basis points) in FY 2025
- The annual service fee will be 0.2115% (21.15 basis points) of the outstanding balance of the loan
- A decrease from 0.356% (35.6 basis points) in FY 2025
To read Information Notice 5000-871532 regarding 504 Fees, click here.
To read Information Notice 5000-8720051 regarding 7(a) Fees, click here.