SBA 7(a) Q&A
Short answer
Ongoing servicing fees, also known as the annual service fee or guaranty fee, are paid by the lender to the SBA, and the cost is typically passed on to the borrower as part of the interest rate.
The SBA charges an annual service fee (often called the 'on-going guaranty fee') to the lender for the guaranteed portion of the loan that remains outstanding. For loans over $150,000, this fee for FY 2026 is 0.55% per year of the outstanding guaranteed principal balance. Lenders typically factor this cost into the interest rate they offer the borrower, so it is indirectly paid by the borrower over the life of the loan as part of their regular payments.
A $1 million SBA 7(a) loan has an outstanding guaranteed balance of $750,000. The lender pays an annual service fee of 0.55% of $750,000, which is $4,125. This cost is incorporated into the borrower's annual interest rate.
Insider move
Lenders must accurately calculate and remit the ongoing service fee to the SBA on time. Failure to do so can result in penalties or even a repair or denial of the SBA guaranty. They ensure their loan pricing covers this fee.
7(a) Fees Effective During Fiscal Year 2026
SOP 50 10 - Lender and Development Company Loan Programs
FY 2026 Updated Fee Schedule for SBA Oversight of 7(a) Lenders
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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