{"ok":true,"canonical_url":"https://dealroom.so/glossary/annual-service-fee","api_url":"https://dealroom.so/api/public/glossary/annual-service-fee","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"annual-service-fee","term":"Annual Service Fee","group":"The loan itself","definition":"This is a yearly fee the SBA charges the lender for guaranteeing your loan, which lenders typically pass on to you. It's an ongoing cost factored into your monthly loan payments.","what_it_means":"The annual service fee is paid throughout the life of your 7(a) loan, separate from the upfront guaranty fee. It's a percentage of the outstanding principal balance and is usually included in your regular debt service. Factor this into your total cost of borrowing, as it impacts your monthly cash outflow.","url":"https://dealroom.so/glossary/annual-service-fee","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"guaranty-fee","term":"Guaranty fee","url":"https://dealroom.so/glossary/guaranty-fee"},{"slug":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"ongoing-servicing-fee","term":"Ongoing servicing fee","url":"https://dealroom.so/glossary/ongoing-servicing-fee"}],"related_questions":[{"question":"When is the annual service fee waived for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-the-annual-service-fee-waived-for-a-7-a-loan"},{"question":"How is the ongoing annual service fee for an SBA 7(a) loan determined?","url":"https://dealroom.so/sba-loans/basics/how-is-the-ongoing-annual-service-fee-for-an-sba-7-a-loan-determined"},{"question":"What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-purpose-of-the-annual-service-fee-on-going-guaranty-fee-for-an-sba-7-a-loan"},{"question":"What is the process for a lender to remit the upfront guaranty fee and annual service fee to the SBA?","url":"https://dealroom.so/for-lenders/questions/what-is-the-process-for-a-lender-to-remit-the-upfront-guaranty-fee-and-annual-service-fee-"},{"question":"When is the ongoing SBA servicing fee (annual service fee) for a 7(a) loan typically collected from the lender?","url":"https://dealroom.so/for-lenders/questions/when-is-the-ongoing-sba-servicing-fee-annual-service-fee-for-a-7-a-loan-typically-collecte"},{"question":"How does a lender calculate the ongoing servicing fee (annual service fee) due to the SBA for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-calculate-the-ongoing-servicing-fee-annual-service-fee-due-to-the-sba-fo"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Annual Service Fee","url":"https://dealroom.so/glossary/annual-service-fee","source_type":"DealRoom Data"}}