{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/how-is-the-ongoing-annual-service-fee-for-an-sba-7-a-loan-determined","api_url":"https://dealroom.so/api/public/questions/how-is-the-ongoing-annual-service-fee-for-an-sba-7-a-loan-determined","question":"How is the ongoing annual service fee for an SBA 7(a) loan determined?","topic":"Fees & penalties","audience":"new","bot_mode":"buyer","short_answer":"The ongoing annual service fee for an SBA 7(a) loan is calculated as a percentage of the outstanding guaranteed portion of the loan and is typically paid by the borrower.","rule":"The SBA charges an annual servicing fee (also called an annual service fee or ongoing guaranty fee) to the lender for the guaranteed portion of the loan. This fee is generally passed through to the borrower and is calculated annually based on the outstanding guaranteed principal balance. The fee rate is set by the SBA for each fiscal year.","example":"For a $500,000 loan with a 75% SBA guaranty, the annual servicing fee would be calculated on $375,000 (the guaranteed portion). If the fee rate for the fiscal year is 0.55%, the annual fee would be $2,062.50, typically collected monthly as part of the loan payment.","what_lenders_check":"Lenders must accurately calculate and collect the annual service fee from the borrower and remit it to the SBA. They also ensure transparency in disclosing this fee to the borrower, usually detailed in the loan authorization and payment schedule.","required_facts":["Annual servicing fee","Percentage based","Outstanding guaranteed balance","SBA sets rate","Paid by borrower"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Fees Effective During Fiscal Year 2026","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Fees Effective During Fiscal Year 2026","url":"https://www.sba.gov/sites/default/files/2025-08/Info%20Notice%20-%207%28a%29%20Fees%20FY%202026%20%28FINAL%208-28-25%29.pdf"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"Are there any upfront fees required for an SBA 7(a) loan, apart from the interest rate?","url":"https://dealroom.so/sba-loans/basics/are-there-any-upfront-fees-required-for-an-sba-7-a-loan-apart-from-the-interest-rate"}],"related_terms":[{"term":"Ongoing service fee","url":"https://dealroom.so/glossary/ongoing-service-fee"},{"term":"Annual Service Fee","url":"https://dealroom.so/glossary/annual-service-fee"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Annual Ongoing Servicing Fee","url":"https://dealroom.so/glossary/annual-ongoing-servicing-fee"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/how-is-the-ongoing-annual-service-fee-for-an-sba-7-a-loan-determined","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}