Glossary · The loan itself
In short
This is a yearly fee the SBA charges the lender for guaranteeing your loan, which lenders typically pass on to you. It's an ongoing cost factored into your monthly loan payments.
The annual service fee is paid throughout the life of your 7(a) loan, separate from the upfront guaranty fee. It's a percentage of the outstanding principal balance and is usually included in your regular debt service. Factor this into your total cost of borrowing, as it impacts your monthly cash outflow.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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