SBA Guaranty Fee Updates

On Thursday, September 30th, SPARK will be updated to support the new guaranty fee calculations defined in the SBA Information Notice from September 7, 2021.

SPARK customers should expect the following changes to all SBA 7(a) products:

New Guaranty Percentages

SBA 7(a)

• 85% for loans that are $150,000 or less

• 75% for loans greater than $150,000

• $5,000,000 maximum loan amount

International Trade

• 90% for all loans

• $5,000,000 maximum loan amount

Express

• 50% for all loans

• $500,000 maximum loan amount

Export Express

• 90% for loans that are $350,000 or less

• 75% for loans greater than $350,000

• $500,000 maximum loan amount

Community Advantage

• 85% for loans that are $150,000 or less

• 75% for loans greater than $150,000

• $250,000 maximum loan amount

New Guaranty Fee Calculations

The guaranty fee calculations apply to SBA 7(a), International Trade, *Express, Export Express, and Community Advantage.

• Loans with a term greater than 12 months

  • 0% for loans that are $350,000 or less

  • 2.77% of the guaranteed portion for loans greater than $350,000 but less than or equal to $700,000

  • 3.27% of the guaranteed portion for loans greater than $700,000 but less than or equal to $1,000,000

  • 3.5% of the guaranteed portion for loans greater than $1,000,000 (up to the maximum loan amount) plus 3.75% of the guaranteed portion over $1,000,000.

• Loans with a term less than or equal to 12 months

  • 0% for loans that are $350,000 or less

  • 0.25% of the guaranteed portion for loans greater than $350,000 (up to the maximum loan amount)

* All SBA Express loans made to veteran-owned businesses will have the guaranty fee waived. A veteran-owned business is defined as a business that is at least 51% owned by a veteran owner.

How do I apply the new guaranty fee to my existing loan packages?

We've introduced a guaranty fee synchronization button on the package summary page that is available for all users who have authority to update a package. To apply the new guaranty fee calculation to your package, simply click the button as shown below.

Find Out More

Stay tuned for the latest features and subscribe to your favorite categories. If you have any feedback or questions about this release, please reach out to your favorite CSM, or email us at support@lendwithspark.com. Your feedback will help us make SPARK the best loan origination software in the market!