SBA Announces 0% Guaranty Fees for Eligible Rural and Critical-Industry Loans

Posted On: September 18, 2026 by First State Bank Nebraska in: Business

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SBA Announces 0% Guaranty Fees for Eligible Rural and Critical-Industry Loans

Nebraska businesses in manufacturing, the food supply chain, and qualifying rural areas could see significant savings on SBA financing beginning October 1, 2026.

The U.S. Small Business Administration (SBA) has announced updated fee schedules for 7(a) and 504 loans approved between October 1, 2026, and September 30, 2027. Under the new schedules, eligible loans of $700,000 or less may qualify for a 0% SBA Guaranty Fee, also known as the Upfront Fee.

Who Qualifies for the 0% SBA Guaranty Fee?

Under the new fee schedule, SBA loans of $700,000 or less qualify when the borrower falls into one of three categories:

  • Manufacturers – Businesses within NAICS sectors 31–33.
  • Food supply chain businesses – Including agricultural production, farm support, wholesale distribution, and refrigerated and frozen transportation and warehousing.
  • Businesses located in qualifying rural areas.

In addition, SBA Express loans made to businesses owned and controlled by a veteran or a veteran's spouse will continue to carry a $0 Upfront Fee.

What Does "Rural" Mean for Nebraska Businesses?

The SBA's rural eligibility creates an especially significant opportunity for businesses across Nebraska. Based on the applicable rural designation, businesses throughout Nebraska may qualify for the 0% fee based on location, with the exception of businesses located in the following counties: Adams, Box Butte, Dakota, Dodge, Douglas, Hall, Lancaster, Madison, Platte and Sarpy.

Eligible manufacturers and food supply chain businesses located within these counties may still qualify for the 0% Upfront Fee based on their industry.

What Qualifies as a Food Supply Chain Business?

Businesses in the following North American Industry Classification System qualify as food supply chain businesses:

NAICS Industry 1111 Oilseed and Grain Farming 1112 Vegetable and Melon Farming 1113 Fruit and Tree Nut Farming 1121 Cattle Ranching and Farming 1122 Hog and Pig Farming 1123 Poultry and Egg Production 1124 Sheep and Goat Farming 1125 Aquaculture 1129 Other Animal Production 1141 Fishing 1151 Support Activities for Crop Production 1152 Support Activities for Animal Production 423820 Farm and Garden Machinery and Equipment Merchant Wholesalers 4244 Grocery and Related Product Merchant Wholesalers 4245 Farm Product Raw Material Merchant Wholesalers 424910 Farm Supplies Merchant Wholesalers 445110 Supermarkets and Other Grocery Retailers 484220* Specialized Freight Trucking, Local 484230* Specialized Freight Trucking, Long-Distance 493120 Refrigerated Warehousing and Storage 493130 Farm Product Warehousing and Storage *Businesses specifically transporting refrigerated/frozen products, farm products, grain products, or livestock.

What Could the Fee Change Mean for Your Business?

SBA guaranty fees can add to the upfront cost of financing. Eliminating that fee for qualifying loans could make SBA financing more attractive for businesses planning investments in areas such as equipment, facilities, expansion, acquisitions or other eligible business needs.

For rural Nebraska businesses in particular, the new fee schedule creates another reason to explore whether an SBA loan could fit upcoming growth plans.

First State Bank Nebraska is an SBA Preferred Lender and works with business owners to evaluate financing options and navigate the SBA lending process. If you're considering a business investment or planning for growth in the coming year, now may be a good time to talk with a First State lender about your options and whether your project may qualify for the SBA's new 0% guaranty fee.

Eligibility and SBA loan terms are subject to SBA requirements and program guidelines. The 0% Upfront Fee described above applies to qualifying loans of $700,000 or less approved during the applicable SBA fiscal-year period. Contact First State Bank Nebraska for additional information and to determine eligibility.

Tags: affordable small business loans, SBA, SBA loans, Small business, Small Business Administration, small business administration loans, small business financing