For SBA lenders
Short answer
Lenders must remit annual service fees (also known as the 'on-going guaranty fee') to the SBA semi-annually, based on the outstanding guaranteed portion of the loan, regardless of whether the loan is current or in default.
In addition to the upfront guaranty fee, lenders pay an ongoing annual service fee to the SBA. This fee is calculated based on the average daily outstanding guaranteed balance of the loan for the previous six-month period. Lenders are responsible for collecting this from the borrower (unless the loan is under $150,000, where it's typically absorbed by the lender) and remitting it to SBA semi-annually, even if the loan is in default.
A lender has a portfolio of 7(a) loans. For a $1,000,000 loan with a 75% guaranty, the average guaranteed outstanding balance for the past six months was $700,000. The lender calculates the annual service fee (e.g., 0.55% of $700,000) and remits the semi-annual portion to the SBA.
Insider move
Lenders must accurately calculate and timely remit the annual service fee. Failure to do so can result in penalties and impact the lender's good standing with SBA. Accounting systems must be robust enough to track these fees for a large portfolio.
7(a) Fees Effective During Fiscal Year 2026
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on guaranty fees
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day