SBA 7(a) prepayment fee calculator.

How it is calculated

The fee applies only when all of these hold: the loan has a maturity of 15 years or more; you prepay (a principal payment beyond the amortization schedule), alone or in total, during one of the first three successive 12-month periods after first disbursement; and those prepayments are more than 25% of the highest outstanding principal balance. The fee is then 5% of the total prepayments in the first period, 3% in the second and 1% in the third (13 CFR 120.223). This page checks each condition, multiplies, and shows the same prepayment in each period.

Worked example

On a 25-year loan with a highest balance of $300,000.00, 25% is $75,000.00. Prepaying $100,000.00 in month 8 is above that, so the fee is 5% of $100,000.00, or $5,000.00. Prepaying exactly $75,000.00 would carry no fee. After month 36 there is no fee at all.

Sources and limits

Rule: 13 CFR 120.223, subsidy recoupment fee payable to SBA by Borrower (retrieved 2026-10; the text defines prepayment as a payment of principal in excess of the amount due on the amortization schedule). Your note and loan program may add exceptions or other prepayment terms that this page does not model, and your lender may have its own charges. Ask your lender for a payoff statement before paying.

FAQ

Is there a prepayment penalty on SBA 7(a) loans?

There is a subsidy recoupment fee in limited cases: maturity of 15 years or more, prepayments in the first three years, and more than 25% of the highest outstanding balance. It is 5%, 3% or 1% by year (13 CFR 120.223).

Does the fee apply to regular payments?

No. Only principal paid beyond the amortization schedule counts as prepayment.

Are several smaller prepayments added together?

Yes. The rule counts prepayments in the aggregate within a 12-month period.

What if my loan is shorter than 15 years?

The conditions in the rule are not met, so this fee does not apply. Check your note for any other terms.