SBA loan basics
Short answer
Yes, in addition to interest, there is typically an annual ongoing service fee that the lender pays to the SBA and passes on to the borrower.
This annual service fee is calculated as a percentage of the outstanding principal balance of the guaranteed portion of the loan. It's paid by the lender to the SBA, usually quarterly, and is commonly built into the borrower's monthly payment.
For a loan with an outstanding guaranteed balance of $750,000, if the annual service fee is 0.55%, the borrower would effectively pay an additional $4,125 per year (or about $343.75 per month) on top of interest and principal.
Insider move
Lenders must accurately calculate and remit this ongoing service fee to the SBA. They ensure transparency with the borrower regarding this fee, often integrating it into the overall loan repayment schedule.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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