{"ok":true,"canonical_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","api_url":"https://dealroom.so/api/public/questions/what-is-the-purpose-of-the-annual-service-fee-on-going-guaranty-fee-for-an-sba-7-a-loan","question":"What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?","topic":"Rate & fees","audience":"borrower","bot_mode":"buyer","short_answer":"The annual service fee is paid by the lender to the SBA to cover the ongoing costs of administering the 7(a) loan program and maintaining the loan guarantee.","rule":"This fee, also known as the ongoing guaranty fee, is an annual charge that lenders pay to the SBA. Lenders often pass this cost onto the borrower as part of the interest rate or as a separate annual fee, contributing to the overall cost of the loan.","example":"For a $1,000,000 SBA 7(a) loan, the annual service fee for FY2026 is 0.55% of the outstanding guaranteed portion. If 75% is guaranteed, the fee would be 0.55% of $750,000, or $4,125 per year.","what_lenders_check":"Lenders are responsible for calculating and remitting the annual service fee to the SBA accurately and on time. They ensure that the fee is correctly applied and disclosed to the borrower according to SBA regulations.","required_facts":["Annual service fee","Ongoing guaranty fee","Program administration","Loan guarantee","Lender payment","SBA cost"],"source_families":["7(a) Fees Effective During Fiscal Year 2026","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"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":"Besides the interest rate, what upfront fees will I pay for a $1 million SBA 7(a) loan at closing?","url":"https://dealroom.so/sba-7a/questions/besides-the-interest-rate-what-upfront-fees-will-i-pay-for-a-1-million-sba-7-a-loan-at-clo"},{"question":"How are the ongoing servicing fees for an SBA 7(a) loan calculated and paid?","url":"https://dealroom.so/sba-7a/questions/how-are-the-ongoing-servicing-fees-for-an-sba-7-a-loan-calculated-and-paid"},{"question":"What are the typical interest rates for an SBA 7(a) loan, and are they fixed or variable?","url":"https://dealroom.so/sba-7a/questions/what-are-the-typical-interest-rates-for-an-sba-7-a-loan-and-are-they-fixed-or-variable"},{"question":"What is the \"SBA guaranty fee\" I pay on an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-guaranty-fee-i-pay-on-an-sba-7-a-loan"},{"question":"Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?","url":"https://dealroom.so/sba-7a/questions/are-there-any-other-lender-specific-fees-beyond-the-sba-guaranty-fee-and-ongoing-servicing"},{"question":"Can the lender charge their own separate processing or origination fees for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-the-lender-charge-their-own-separate-processing-or-origination-fees-for-an-sba-7-a-loa"}],"related_terms":[{"term":"Annual Service Fee","url":"https://dealroom.so/glossary/annual-service-fee"},{"term":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-guaranty"},{"term":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"},{"term":"SBA guaranty fee","url":"https://dealroom.so/glossary/sba-guaranty-fee"},{"term":"Service fee","url":"https://dealroom.so/glossary/service-fee"},{"term":"Ineligible for SBA Guaranty","url":"https://dealroom.so/glossary/ineligible-for-sba-guaranty"}],"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-7a/questions/what-is-the-purpose-of-the-annual-service-fee-on-going-guaranty-fee-for-an-sba-7-a-loan","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."]}