{"ok":true,"canonical_url":"https://dealroom.so/glossary/service-fee","api_url":"https://dealroom.so/api/public/glossary/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":"service-fee","term":"Service fee","aka":"Ongoing servicing fee","group":"The loan itself","definition":"A recurring charge paid to a lender for managing and administering your loan. As a buyer, this is an ongoing cost that impacts your loan's effective interest rate and overall debt service.","what_it_means":"For SBA 7(a) loans, the lender charges a monthly service fee, typically a percentage of the outstanding principal balance. This fee is separate from the interest rate and the SBA's upfront guaranty fee. Factor it into your global cash flow projections to understand the true cost of borrowing.","url":"https://dealroom.so/glossary/service-fee","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"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":"ongoing-servicing-fee","term":"Ongoing servicing fee","url":"https://dealroom.so/glossary/ongoing-servicing-fee"},{"slug":"guaranty-fee","term":"Guaranty fee","url":"https://dealroom.so/glossary/guaranty-fee"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"}],"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":"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"},{"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"}]},"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 — Service fee","url":"https://dealroom.so/glossary/service-fee","source_type":"DealRoom Data"}}