SBA loan basics
Short answer
Yes, borrowers typically pay an annual service fee to the SBA on the outstanding guaranteed portion of the loan. This is in addition to the upfront guaranty fee paid at closing.
The annual service fee, also known as the ongoing servicing fee, is calculated on the outstanding balance of the guaranteed portion of the loan. This fee helps offset the costs of the SBA's loan programs and is usually collected by the lender and remitted to the SBA.
For a $1,000,000 loan with a 75% SBA guarantee, the annual service fee would be calculated each year on the remaining guaranteed balance, which would be $750,000 initially, then decreasing as the loan is repaid.
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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