For SBA lenders
Short answer
The ongoing servicing fee (OSF) is a cost of the loan and must be included in the APR calculation, increasing the effective annual cost to the borrower.
The ongoing servicing fee, paid by the borrower to the lender and then remitted to the SBA, is considered a finance charge. As such, it must be included in the calculation of the Annual Percentage Rate (APR) under Truth in Lending Act (TILA) requirements. This ensures full transparency of the total cost of credit to the borrower.
A $1,000,000 7(a) loan has an interest rate of 8% and an ongoing servicing fee of 0.36% of the guaranteed portion. When calculating the APR, the lender must incorporate both the 8% interest and the equivalent annual dollar amount of the 0.36% servicing fee, which will result in an APR higher than 8%.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
7(a) Fees Effective During Fiscal Year 2026
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.
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