This is quite normal credit!

It would be better if you contact directly SBA about it and how it concerns you and them, as well as where that kind of money might be used fro and why do you need to put out such money,.

They use this fee to replenish their pool for guaranting these loans. It is a large amount.  But, do know that you can include it in the financing if you can't pay for it up front - but, that also means it will cost you more. Your best options are: Ask your bank to underwrite it on their own and thus only pay their fees not the SBA's. Negotiate - you never know what will happen unless you ask. Lastly, don't think about it as you throwing away that money.  If this is your only option of gettig this business - then nothing you do is wasteful.  Just know that if you run and manage your business for this - the busines should be able to easily absorb this fee - that is the goal of the business in the first place - to take a set of assets (and capital is an asset) and use them to pay for themselves as well as provide you the most return possible. But, if you have no other choice - the fee is not a waste - it is just anohter cost of doing business or in your case of getting your business going.

Hi, if you have questions about the SBA loan process, contact your local SBA office by visiting SBA Direct at http://www.sba.gov/sba-direct. Just enter your zip code to find your nearest SBA office.