For SBA lenders
Short answer
The annual service fees (also known as the ongoing guaranty fee) for 7(a) loans are generally due from lenders to the SBA on an annual basis, typically paid quarterly in advance, based on the outstanding principal balance of the guaranteed portion of the loan.
SBA charges lenders an ongoing annual service fee for each 7(a) loan to cover the administrative costs and potential losses from the program. Lenders are responsible for remitting these fees to the SBA, which are usually collected from the borrower and passed on. The fee calculation is based on the guaranteed portion of the outstanding loan balance.
A lender funds a $1 million 7(a) loan with a 75% guaranty. The annual service fee for FY2026 is 0.55% of the guaranteed portion. The lender calculates this as $1,000,000 * 0.75 * 0.0055 = $4,125. This amount is then billed to the borrower and remitted by the lender to the SBA in quarterly installments.
Insider move
Lenders must accurately calculate and timely remit annual service fees to the SBA. Failure to do so can result in penalties or impact the lender's standing with the SBA, and could jeopardize the guaranty if consistently mismanaged.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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