SBA 7(a) Q&A
Short answer
Yes, generally an ongoing 'annual service fee' (also called a 'servicing fee') is paid by the borrower on the outstanding guaranteed balance of the loan.
In addition to the upfront guaranty fee, the SBA charges an annual service fee to the lender, which is typically passed on to the borrower. This fee is calculated on the outstanding guaranteed portion of the loan and is paid periodically (e.g., monthly or quarterly) throughout the loan's life.
For an SBA loan with an outstanding guaranteed balance of $500,000, and an annual service fee rate of 0.55%, you would pay approximately $2,750 per year in this fee, usually integrated into your monthly payment.
Insider move
Lenders ensure proper collection and remittance of the annual service fee to the SBA. They disclose this fee clearly in the loan authorization and ensure it's accurately applied to the borrower's account.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
7(a) Fees Effective During Fiscal Year 2026
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 rate & 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