SBA loan basics
Short answer
Yes, there is an annual service fee (also called the ongoing guaranty fee) that borrowers typically pay. It's calculated on the outstanding guaranteed balance of the loan.
In addition to the upfront guaranty fee, the SBA charges an annual service fee to the lender, which is typically passed on to the borrower. This fee is calculated as a percentage of the outstanding guaranteed principal balance of the loan and is paid annually. The specific percentage is determined by the SBA for each fiscal year (e.g., FY2026).
For a $500,000 SBA 7(a) loan with an 85% guaranty, the guaranteed portion is $425,000. If the annual service fee is 0.55%, the borrower would pay approximately $2,337.50 per year on the guaranteed portion.
Lenders must correctly calculate and collect both the upfront guaranty fee and the annual service fee according to SBA guidelines. Failure to do so can result in financial penalties or issues with the SBA guaranty.
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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