SBA loan basics
Short answer
Yes, borrowers typically pay an annual service fee (also known as the 'on-going guaranty fee') to the SBA, in addition to the upfront guaranty fee.
In addition to the upfront guaranty fee paid at closing, the SBA charges an annual service fee (currently 0.34% of the outstanding guaranteed portion) to the lender, which is typically passed on to the borrower. This fee helps cover the costs of the program.
If you have an outstanding guaranteed balance of $300,000, your annual service fee would be approximately $1,020 (0.34% of $300,000), typically paid monthly or quarterly as part of your loan payment.
Insider move
Lenders ensure all required fees are properly disclosed to the borrower and collected in accordance with SBA policy. They must remit these fees to the SBA on time.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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