The U.S. Small Business Administration has announced the lender fees for fiscal year 2025 for the 7(a) and 504 loan programs.

For the second consecutive year, the SBA will not charge upfront fees for loans of $1,000,000 or less for both loan programs.

Administrator Isabel Casillas Guzman emphasized a commitment to expanding access to capital for underserved populations through small dollar loans.

Zero Fees for Small Dollar Loans

One of the key highlights of the announcement is the continuation of zero or low fees for small dollar loans. In the SBA’s flagship 7(a) program, there will be no fees for loans of $500,000 or less. This move is part of the administration’s broader effort to encourage small dollar lending and make it easier for small businesses to access the funds they need to grow and succeed.

The 7(a) Working Capital Pilot (WCP) program will also see significant fee reductions. No upfront fees will be charged for loans of $1,000,000 or less, and there will be no annual service fee for loans of $500,000 or less. These measures aim to provide substantial financial relief to small businesses, enabling them to allocate more resources towards their operations and growth initiatives.

For more specific information on the FY25 fees, interested parties can refer to the 7(a) Fee Notice, 504 Fee Notice, and Working Capital Pilot (WCP) Fee Notice. These documents provide detailed breakdowns of the fees and are essential resources for lenders and borrowers alike.