{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/is-the-ongoing-annual-service-fee-for-a-7-a-loan-collected-directly-from-the-borrower-by-t","api_url":"https://dealroom.so/api/public/questions/is-the-ongoing-annual-service-fee-for-a-7-a-loan-collected-directly-from-the-borrower-by-t","question":"Is the ongoing annual service fee for a 7(a) loan collected directly from the borrower by the SBA?","topic":"Guaranty fees","audience":"lender","bot_mode":"lender","short_answer":"No, the ongoing annual service fee (also known as the servicing fee or annual fee) is collected by the SBA from the lender, who typically passes it on to the borrower.","rule":"The SBA charges an annual service fee to the lender for the guaranteed portion of the loan that remains outstanding. Lenders are generally permitted to pass this fee on to the borrower. The lender then remits the collected fee to the SBA on a monthly or quarterly basis, depending on their servicing agreement.","example":"A borrower has an outstanding 7(a) loan balance. Each year, the lender calculates the annual service fee based on the outstanding guaranteed portion and adds it to the borrower's loan payments. The lender then remits these collected fees to the SBA according to the established schedule.","what_lenders_check":"Lenders must accurately calculate and collect the annual service fee from borrowers and ensure timely remittance to the SBA. Failure to do so can result in penalties or impact the lender's standing with the SBA.","required_facts":["Annual service fee","Ongoing fee","Collected from lender","Remitted to SBA","Borrower pass-through"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","7(a) Fees Effective During Fiscal Year 2026","13 CFR Part 120 - Business Loans"],"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":"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":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"How is the upfront guaranty fee calculated for a 7(a) loan of $500,000 for FY2026?","url":"https://dealroom.so/for-lenders/questions/how-is-the-upfront-guaranty-fee-calculated-for-a-7-a-loan-of-500-000-for-fy2026"},{"question":"What is the process for a lender to remit the SBA upfront guaranty fee after loan closing?","url":"https://dealroom.so/for-lenders/questions/what-is-the-process-for-a-lender-to-remit-the-sba-upfront-guaranty-fee-after-loan-closing"},{"question":"How does the SBA calculate the 7(a) loan guaranty fee when the loan amount is precisely $1,000,000 for FY2026?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-calculate-the-7-a-loan-guaranty-fee-when-the-loan-amount-is-precisely-1-0"},{"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 do the upfront SBA guaranty fees differ for 7(a) loans between $150,001 and $700,000 for FY2026?","url":"https://dealroom.so/for-lenders/questions/how-do-the-upfront-sba-guaranty-fees-differ-for-7-a-loans-between-150-001-and-700-000-for-"},{"question":"How do the ongoing annual service fees for 7(a) loans impact the lender's accounting and remittance to SBA?","url":"https://dealroom.so/for-lenders/questions/how-do-the-ongoing-annual-service-fees-for-7-a-loans-impact-the-lender-s-accounting-and-re"}],"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":"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":"Standard 7(a) loan","url":"https://dealroom.so/glossary/standard-7-a-loan"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"}],"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/is-the-ongoing-annual-service-fee-for-a-7-a-loan-collected-directly-from-the-borrower-by-t","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."]}