SBA 7(a) Q&A
Short answer
The annual service fee, also known as the ongoing guaranty fee, is calculated annually on the outstanding principal balance and is typically due from the borrower once per year, usually on the anniversary of the loan disbursement.
This fee, paid to the SBA, helps offset the costs of the 7(a) loan program. The lender collects it from the borrower and remits it to the SBA. For loans over $1,000,000, it's 0.36% of the guaranteed portion of the outstanding balance. For loans $1,000,000 or less, it's 0.34%. For very small loans, it can be lower or waived.
A borrower has a $1,500,000 SBA loan (75% guaranteed). On the first anniversary, the outstanding principal is $1,400,000. The guaranteed portion is $1,050,000. The annual service fee would be calculated on $1,050,000 at 0.36%, totaling $3,780.
Insider move
Lenders are responsible for collecting and remitting the annual service fee to the SBA. They ensure the fee is accurately calculated based on the guaranteed portion of the outstanding balance and that the borrower is aware of this recurring cost.
7(a) Fees Effective During Fiscal Year 2026
SOP 50 10 - Lender and Development Company Loan Programs
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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