{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-ongoing-annual-service-fee-for-a-7-a-loan-and-how-is-it-calculated-and-remitte","api_url":"https://dealroom.so/api/public/questions/what-is-the-ongoing-annual-service-fee-for-a-7-a-loan-and-how-is-it-calculated-and-remitte","question":"What is the ongoing annual service fee for a 7(a) loan, and how is it calculated and remitted by the lender?","topic":"Guaranty fees","audience":"lender","bot_mode":"lender","short_answer":"The annual service fee, also known as the 'on-going guaranty fee,' is calculated as a percentage of the outstanding guaranteed balance and is remitted monthly by the lender to the SBA.","rule":"For FY2026, the annual service fee is 0.55% (55 basis points) of the outstanding guaranteed portion of the loan. Lenders collect this fee from the borrower (typically as part of the monthly payment) and then remit it to the SBA monthly, usually by the 15th day of the following month.","example":"A $1,000,000 loan with an 85% SBA guaranty ($850,000 guaranteed portion) has an annual service fee of 0.55%. The monthly fee remitted to SBA would be calculated as ($850,000 * 0.0055) / 12 = $389.58, assuming the principal balance remains constant.","what_lenders_check":"Lenders must accurately calculate and remit the ongoing service fee monthly. Errors or delays in remittance can lead to penalties or jeopardize the guaranty. Robust servicing systems are necessary to track the outstanding guaranteed balance and ensure timely payments to the SBA.","required_facts":["Annual service fee","Ongoing guaranty fee","Guaranteed balance","Monthly remittance","FY2026 rates"],"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/what-is-the-ongoing-annual-service-fee-for-a-7-a-loan-and-how-is-it-calculated-and-remitte","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."]}