SBA loan basics
Short answer
Yes, in addition to an upfront guaranty fee, borrowers generally pay an ongoing annual service fee for SBA 7(a) loans. This fee is calculated on the outstanding guaranteed balance.
The annual service fee, also known as the servicing fee, is paid by the lender to the SBA, but it is typically passed on to the borrower as part of the loan's overall cost. This fee is calculated annually based on the outstanding guaranteed portion of the loan and is paid periodically (e.g., monthly or quarterly) throughout the life of the loan. For FY2026, the fee is 0.55% of the guaranteed portion.
A borrower has an outstanding SBA 7(a) loan balance where $500,000 is guaranteed by the SBA. At an annual service fee rate of 0.55%, the annual fee passed to the borrower would be $2,750 ($500,000 * 0.0055). This would be factored into their regular payments.
Insider move
Lenders are responsible for collecting and remitting these fees to the SBA. They ensure the fee is accurately calculated and included in the borrower's payment schedule, clearly disclosing it to the borrower at closing.
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.
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