Glossary · The loan itself
In short
A processing fee is a charge by the lender to cover the costs of processing your loan application and preparing the necessary paperwork. This is distinct from the SBA guaranty fee.
Like application and administrative fees, explicit "processing fees" are generally disallowed for SBA 7(a) loans. Lenders typically recover these costs through other permissible charges like packaging fees or by incorporating them into the loan's interest rate. Always scrutinize all lender charges.
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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