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Guarantee Fee

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Guarantee Fee
A sum paid by the importer to the guarantor, usually as a percentage per annum of the face value of the bills or notes being guaranteed.

Guarantee Fee
A fee charged to holders of a mortgage-backed security by the issuer. The guarantee fee helps cover the issuer's expenses but its most important use is to lessen the issuer's risk of loss or default in case too many of the mortgages underlying the security themselves default.


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China in turn introduced a guarantee fee for the customs book worth more than US$2,000.
This competition has pushed the guarantee fee down to only 1% of issuance value, far less than the non-performing-loan ratio of 2-3%.
For example, a small business borrowing $1 million dollars to purchase a building through the 7A Loan Program prior to the economic stimulus bill would have paid an SBA guarantee fee of $26,250.
 
 
 
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