SBA loan basics
Short answer
Yes, in addition to the upfront guaranty fee, borrowers typically pay an annual service fee (also known as a servicing fee) to the SBA for the guaranteed portion of the loan.
This annual service fee is collected by the lender, usually on a monthly or quarterly basis, and remitted to the SBA. It covers the SBA's ongoing cost of providing the guarantee and administering the program. The amount is a small percentage of the outstanding guaranteed principal balance.
A business has an outstanding SBA 7(a) loan of $500,000 with a 75% guarantee. If the annual service fee is 0.55%, they would pay approximately $2,062.50 ($500,000 * 0.75 * 0.0055) per year, typically divided into monthly payments, in addition to their principal and interest.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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