Glossary · The loan itself
In short
A small yearly fee paid by the borrower to the SBA for maintaining the loan guarantee, calculated on the outstanding guaranteed portion. Buyer cares because it's an additional, ongoing cost of having an SBA loan.
Besides the Upfront Guaranty Fee, you'll pay an Annual Ongoing Servicing Fee. This fee is typically collected monthly by your lender and remitted to the SBA. It's a minor but permanent cost of your 7(a) loan, so factor it into your financial projections and debt service calculations.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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