Small manufacturers borrowing through the Small Business Administration are paying no upfront guarantee fees this fiscal year, while most other borrowers face the rates the agency set for fiscal 2026. The SBA announced the fee waiver on September 18, 2025, and the new fee structure took effect October 1, 2025 and runs through September 30, 2026, per the agency's announcement and its fee information notice for lenders.
What changed?
Each federal fiscal year the SBA resets the upfront fees borrowers pay on its guaranteed loans, which the agency publishes in information notices to lenders. For fiscal 2026, the headline change was the elimination of upfront fees for qualifying small manufacturers on 7(a) and 504 loans, a step the agency described as supporting domestic production. The notice also included a clarification of the 90-day rule, which governs the timing for when loans must be approved to fall under a given fee schedule, per the SBA's Information Notice 5000-872051. For other borrowers, the standard upfront guarantee fee structure continued, with fees tiered by loan size on the guaranteed portion, in the range of 2 to 3 percent for smaller loans and higher above the larger tiers.
Who is affected?
Borrowers closing SBA loans during the fiscal 2026 window. A qualifying small manufacturer can save thousands of dollars on a mid-sized loan by avoiding the upfront fee, which improves the effective cost of borrowing at closing. General 7(a) and 504 borrowers should price the fee into loan comparisons, because lenders' quoted points sometimes bundle the government guarantee fee with their own charges. Eligibility for the manufacturer waiver depends on meeting the agency's definitions, so borrowers should confirm qualification with their lender before assuming the waiver applies.
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What should you do?
Ask your lender two questions in writing: what upfront guarantee fee applies to your loan under the current fee schedule, and whether your approval date falls inside the current fiscal year window. If you are a manufacturer, ask the lender to confirm your business meets the SBA's small manufacturer criteria. If a loan is close to the September 30 fiscal-year boundary, the 90-day rule clarification affects which fee schedule applies, so get the timing documented.
What this means for you
Fees are one of the few parts of an SBA loan a borrower can comparison-shop directly, since the guarantee fee is set by the agency but passed through at closing. The fiscal 2026 waiver shifts the calculus for manufacturers considering equipment or facility financing: a fee eliminated at closing is an immediate cash saving, separate from the interest rate. Borrowers outside manufacturing should note that the fee tables reset again on October 1, 2026, and fee waivers in one fiscal year do not automatically continue into the next.
SOCIALGOV is an independent publication and is not affiliated with the SBA. The agency's fee notices and lender portal at sba.gov are the authoritative record of current fees, and your lender provides loan-specific figures.