SBA 504 Loan Fees Just Got a Lot Friendlier for FY2027
Here’s some good news for small business owners: the SBA just announced its SBA 504 loan fees for Fiscal Year 2027, and a big chunk of borrowers are about to pay less to finance their next building or equipment purchase.
What’s Changing With SBA 504 Loan Fees
Every year, the SBA reviews the fees attached to its 504 loan program and adjusts them to reflect the program’s costs. For loans approved between October 1, 2026, and September 30, 2027, the SBA is rolling out one of its most borrower-friendly fee structures in recent memory.
The two fees in question are the upfront guaranty fee, paid at closing, and the annual service fee, charged on the outstanding loan balance each year. Together, they’re a real cost of borrowing, so any reduction goes straight to your bottom line.
Who Qualifies for a Full Fee Waiver
This is the headline news: SBA is waiving both the upfront guaranty fee and the annual service fee entirely for several categories of borrowers.
You may qualify for a full waiver if your business is:
- A manufacturer (NAICS Sectors 31-33)
- Part of the food supply chain (a long list of NAICS codes covering everything from food manufacturing to refrigerated trucking of farm and grain products)
- Located in a rural area
If any of those describe your business, this could be the most cost-effective year in a long time to move forward on that building purchase, expansion, or equipment upgrade.
SBA 504 Loan Fees for Everyone Else
If your business doesn’t fall into one of the waived categories, the fees for FY2027 are still modest:
- Upfront guaranty fee: 0.50% of the loan amount
- Annual service fee: 0.203% of the outstanding balance
There’s one small variation worth noting. Businesses using the 504 Debt Refinance without Expansion program (and that aren’t manufacturers) will see an annual service fee of 0.204%, just one-tenth of a basis point higher. It’s a rounding difference, not a reason to change your plans.
Why This Matters for Your Bottom Line
Every basis point counts when you’re financing commercial real estate or heavy equipment. A waived upfront fee alone can mean thousands of dollars staying in your business instead of going toward closing costs.
For manufacturers and food supply chain businesses especially, this is the SBA sending a clear signal: it wants to make it easier for you to invest in your own operations, whether that’s a new production facility or updated machinery.
How to Take Advantage of Lower SBA 504 Loan Fees
These fees apply to loans approved between October 1, 2026, and September 30, 2027, so timing matters. If you’ve been sitting on a decision to buy your building, expand your facility, or invest in equipment, now is a smart time to start the conversation.
A Certified Development Company (CDC) like Growth Corp can walk you through whether your business qualifies for a waiver, and what your total project costs would look like either way.
Ready to see what the FY2027 SBA 504 loan fees mean for your project? Reach out to our team and we’ll help you figure out your numbers before you commit to anything.
Frequently Asked Questions
What are the SBA 504 loan fees for FY2027? For most borrowers, the upfront guaranty fee is 0.50% of the loan amount and the annual service fee is 0.203% of the outstanding balance. These fees apply to 504 loans approved between October 1, 2026, and September 30, 2027.
Who qualifies for a full SBA 504 fee waiver in FY2027? Manufacturers (NAICS Sectors 31-33), food supply chain businesses, businesses located in rural areas, and borrowers using the 504 Debt Refinance with Expansion or without Expansion programs qualify for a full waiver of both the upfront guaranty fee and the annual service fee.
Is the annual service fee the same for everyone? Almost. Most borrowers pay 0.203%. Borrowers using the 504 Debt Refinance without Expansion program (who aren’t manufacturers) pay a slightly higher annual service fee of 0.204%.
When do the new SBA 504 loan fees take effect? The FY2027 fee schedule applies to loans approved from October 1, 2026, through September 30, 2027.
Who announced these fee changes? The U.S. Small Business Administration announced the FY2027 fees in an Information Notice (Control No. 5000-881796), signed by Thomas Kimsey, Associate Administrator of the Office of Capital Access, and published September 3, 2026.
How do I know if my business qualifies for a waiver? A Certified Development Company like Growth Corp can review your NAICS code, location, and loan type to confirm whether you qualify for a full fee waiver under the FY2027 schedule.
Source: SBA Information Notice, Control No. 5000-881796, published September 3, 2026.