SBA loan basics
Short answer
Yes, in addition to the upfront guaranty fee, borrowers also typically pay an ongoing annual service fee, often called the 'SBA annual service fee,' which is collected by the lender.
The annual service fee is calculated as a small percentage of the outstanding guaranteed principal balance. This fee helps the SBA cover the administrative costs of maintaining the loan guarantee and oversight of the program. Lenders pass this fee on to the borrower.
A business with an outstanding SBA guaranteed loan balance of $400,000 might pay an annual service fee of 0.55% (a common rate), amounting to $2,200 for that year, in addition to their regular principal and interest payments.
Insider move
Lenders must accurately calculate and collect this annual fee from the borrower and remit it to the SBA. Proper reporting is crucial for compliance.
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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