A Look at SBA Fee Changes (SOP 50 10 7 vs. 50 10 6)

With the recent update to the Standard Operating Procedure (SOP) 50 10 7.1, several fee structures have shifted compared to the previous SOP 50 10 6. So, what went up, what went down, and what stayed the same?

Upward Adjustments:

• Guarantee Fee: This fee, based on a percentage of the guaranteed loan amount, saw a slight increase across most loan sizes. For example, loans between $150,000 and $500,000 now incur a 2.75% fee, compared to 2.25% previously. For loans exceeding $2 million, the new SOP introduces a 3.50% fee for the guaranteed portion exceeding $1 million, while the old SOP capped it at 3.25%.

• Collateral Registry Fee: This fee, applicable to loans exceeding $150,000 with specific types of collateral, doubled from 0.125% to 0.25%.

• Variable Rate Loan Spread: The spread for variable rate SBA loans jumped from 2.75% to 3% in the new SOP.

Downward Adjustments:

• Servicing Fee: This fee, charged annually for servicing the guaranteed portion of the loan, experienced a welcome decrease for some loan sizes. Loans below $1 million now have a 0.25% servicing fee, down from 0.50%.

• Packaging Fee: The fee associated with packaging SBA loans for secondary market sale is now waived for loans under $10 million, offering cost savings for smaller businesses.

Some fees remained unchanged for consistent planning:

• Line of Credit Annual Fee: This fee for SBA lines of credit continues at 0.50% of the committed line amount.

• Disaster Loan Processing Fee: This fee remains at 3% of the loan amount for approved disaster loans.