SBA 7(a) Q&A
Short answer
Yes, in addition to interest, borrowers typically pay an annual servicing fee (also known as the 'on-going guaranty fee') to the SBA.
The annual servicing fee is a charge for the SBA's ongoing guarantee on the loan. It's calculated as a percentage of the outstanding guaranteed balance and is typically collected by the lender and remitted to the SBA. This fee is separate from the upfront guaranty fee paid at closing.
For a loan with an outstanding guaranteed balance of $1,000,000, the annual service fee might be 0.55% (depending on current fiscal year rates), equating to $5,500 per year.
Lenders are responsible for correctly calculating, collecting, and remitting both the upfront and annual guaranty fees to the SBA. They ensure these fees are clearly disclosed to the borrower at closing and throughout the loan's term.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
7(a) Fees Effective During Fiscal Year 2026
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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