For SBA lenders
Short answer
The annual service fee is calculated as a percentage of the outstanding guaranteed portion of the loan. This fee is paid by the lender to the SBA and is typically passed on to the borrower as part of the overall loan cost.
For 7(a) loans, in addition to the upfront guaranty fee, the SBA charges lenders an annual service fee (also known as the ongoing guaranty fee) on the outstanding guaranteed balance. This fee rate is set annually by the SBA and is detailed in procedural notices. Lenders usually incorporate this cost into the interest rate or other fees charged to the borrower, but it's fundamentally a charge from the SBA to the lender for maintaining the guaranty.
A lender has a $1,000,000 7(a) loan with an 80% SBA guaranty ($800,000 guaranteed portion). If the annual service fee is 0.55%, the lender would pay the SBA $4,400 annually on the guaranteed portion, which is typically recovered from the borrower.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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