SBA 7(a) Q&A
Short answer
The annual service fee is paid by the lender to the SBA to cover the ongoing costs of administering the 7(a) loan program and maintaining the loan guarantee.
This fee, also known as the ongoing guaranty fee, is an annual charge that lenders pay to the SBA. Lenders often pass this cost onto the borrower as part of the interest rate or as a separate annual fee, contributing to the overall cost of the loan.
For a $1,000,000 SBA 7(a) loan, the annual service fee for FY2026 is 0.55% of the outstanding guaranteed portion. If 75% is guaranteed, the fee would be 0.55% of $750,000, or $4,125 per year.
Insider move
Lenders are responsible for calculating and remitting the annual service fee to the SBA accurately and on time. They ensure that the fee is correctly applied and disclosed to the borrower according to SBA regulations.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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