Across every 7(a) loan in our FOIA data since FY2010, as of the March 2026 data refresh, the SBA has guaranteed an average of 74.8% of the loan. 75.9% of those loans carried some form of collateral, and 81.1% carried a variable rate rather than fixed. Those figures update as new loans are funded; see the live numbers in our study how SBA loans actually work and the underlying datasets.
That average sits inside a hard rule, not a negotiation: SBA sets the maximum guarantee by regulation, and it does not cover what most borrowers assume it covers.
What “guaranteed” actually means
The SBA guarantee is an agreement between the SBA and the lender, not between the SBA and the borrower. If a guaranteed loan defaults, the SBA reimburses the lender for a share of its loss on the guaranteed portion. The borrower still owes the full loan amount, and on most 7(a) loans, every owner with 20% or more of the business has signed an unlimited personal guarantee on top of that. See do SBA loans require collateral for how that plays out when a loan goes bad. And for the borrower’s side of that reimbursement, the guaranty purchase and every stage before and after it, see what happens if you default on an SBA loan.
The guarantee exists to change the lender’s underwriting math, not to protect the borrower.
The guarantee percentage, by loan size and program
Under 13 CFR 120.210, a standard 7(a) loan carries:
- 85% guarantee on loans of $150,000 or less
- 75% guarantee on loans over $150,000
Several 7(a) subprograms carry different, statutorily set percentages:
- SBA Express: 50% guarantee, the trade-off for faster turnaround. See SBA Express loans.
- Export Express: 90% on loans of $350,000 or less, 75% on loans from $350,001 to $500,000.
- Export Working Capital Program (EWCP) and International Trade loans: 90% guarantee, capped at $4.5 million in guaranteed dollars on a $5 million loan. See SBA export loan programs.
CAPLines and Community Advantage loans follow the standard 75%/85% guarantee tiers above; neither carries a special enhanced percentage. See SBA CAPLines and SBA Community Advantage.
What it costs: the guaranty fee
The SBA charges an upfront guaranty fee on the guaranteed portion of the loan, not the full loan amount. For fiscal year 2026 (loans approved October 1, 2025 through September 30, 2026), the standard schedule on loans with a maturity over 12 months is:
- 2% on the guaranteed portion of loans of $150,000 or less (the lender may keep up to a quarter of this fee; at least 1.5 points go to SBA)
- 3% on the guaranteed portion from $150,001 to $700,000
- 3.5% on the guaranteed portion from $700,001 up to $1,000,000, plus 3.75% on guaranteed dollars above $1,000,000
Loans with a maturity of 12 months or less carry a flat 0.25% fee. Manufacturers (NAICS 31-33) pay 0% upfront on loans of $950,000 or less, and SBA Express loans to veteran-owned businesses carry a $0 upfront fee. Export Working Capital Program loans use a separate, maturity-based schedule (0.25% to 0.80% of the guaranteed portion). Run your own numbers with the SBA guaranty fee calculator; for the broader rate and fee picture see current SBA loan rates.
On top of the upfront fee, lenders pay SBA an ongoing annual service fee of 0.55% of the outstanding guaranteed balance. Lenders cannot pass this one to the borrower.
The other half of the guarantee: the secondary market
The guarantee does more than backstop a default. It also lets a lender sell the guaranteed portion of a 7(a) loan to an investor, using SBA Form 1086, with the sale processed through SBA’s Fiscal and Transfer Agent. Because the government stands behind that portion, investors are willing to buy it, which returns capital to the lender to fund the next loan. That is a structural reason 7(a) lending can scale the way it does. It also means your loan may be sold in a secondary market shortly after closing; the guarantee, not the borrower relationship, is what makes it saleable.
Before you rely on this
Guarantee percentages, fees, and caps are set by statute and SBA fiscal-year notice and do change. Confirm current terms with a participating lender, and use Lender Match to find lenders active in your state and industry.