Updated! SBA Lender Fee 2025

The U.S. Small Business Administration (SBA) announced today that it will continue to waive upfront fees for 7(a) and 504 loans of $1,000,000 or less in the upcoming fiscal year (FY25). This decision, made by SBA Administrator Isabel Casillas Guzman, aims to expand access to capital for underserved small businesses.

Under the Biden-Harris Administration, the SBA has prioritized equity in its lending programs. To encourage small dollar lending, the agency will maintain zero or minimal fees for loans of $500,000 or less in its flagship 7(a) program.

Additionally, the SBA's 7(a) Working Capital Pilot (WCP) program will charge no upfront fees for loans up to $1,000,000 and waive annual service fees for loans of $500,000 or less.

For detailed information on FY25 fees, please refer to the respective fee notices for the 7(a), 504, and Working Capital Pilot (WCP) programs.

Our Opinion:

While this update improves access, it fails to address core systemic challenges such as insufficient collateral, limited credit history, and biased lending practices that restrict these businesses from securing traditional finance. Additionally, by enhancing the appeal of SBA loans, the agency might unintentionally shift business away from alternative lenders who typically support underserved communities. Despite praising the SBA's intentions, I believe further action is required to genuinely equalize opportunities for underserved groups in small business financing.

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