For SBA lenders
Short answer
No, the ongoing annual service fee (also known as the servicing fee or annual fee) is collected by the SBA from the lender, who typically passes it on to the borrower.
The SBA charges an annual service fee to the lender for the guaranteed portion of the loan that remains outstanding. Lenders are generally permitted to pass this fee on to the borrower. The lender then remits the collected fee to the SBA on a monthly or quarterly basis, depending on their servicing agreement.
A borrower has an outstanding 7(a) loan balance. Each year, the lender calculates the annual service fee based on the outstanding guaranteed portion and adds it to the borrower's loan payments. The lender then remits these collected fees to the SBA according to the established schedule.
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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