What Fee Does The SBA Charge a Borrower for a SBA 7(a) Loan?
SBA 7(a) Loans are small business loans that involve a guarantee by the Small Business Administration. The SBA guarantees a portion of the loan made to small businesses – including franchisees – and, in turn, encourages banks to loan money to small businesses.
The borrower of a SBA 7(a) loan will pay various fees. However, the fee associated with the SBA guarantee is calculated as a percentage of the loan amount guaranteed by the SBA. Typically, the SBA guaranty fee is 2% to 3.75% of the guaranteed loan amount.
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