You got approved for your SBA loan. Now here's the part nobody warned you about: closing costs that can add thousands to your total borrowing expense.
The approval letter arrives for a $500,000 SBA 7(a) loan. Then your lender sends the closing disclosure with an extra $15,000 to $25,000 in fees. SBA loan closing costs typically range from 2% to 5% of the total loan amount.
Non-negotiable. For standard 7(a) loans in 2026:
The fee applies to the guaranteed portion (75% for loans over $150K). On a $500,000 loan: 2% of $375,000 = $7,500. See our SBA 7(a) rates and terms guide.
0.55% annually on the outstanding guaranteed balance. On a $500,000 loan: ~$2,063 in year one, declining as you pay down.
$2,500 to $4,000. Negotiable — some lenders handle in-house, others outsource.
$2,000 to $5,000. You pay for the lender's attorney. Independent counsel is additional.
Commercial property: $2,000 to $5,000. Equipment: $1,000 to $2,500. Non-refundable.
Phase I: $1,500 to $3,500. Phase II (if needed): $5,000 to $15,000 additional.
$1,500 to $3,000 plus title search ($200-$400) and recording fees.
Key takeaway: Focus negotiation on packaging fees, attorney costs, and vendor selection where you can save $2,000 to $5,000.
Total: $22,200 (4.4%). See full SBA requirements before committing.
504 loans involve a CDC with additional fees:
On a $500K CDC portion: $10,000-$15,000 in CDC costs. The tradeoff is lower fixed rates. See our SBA 504 rates guide.
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