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Glossary · The loan itself

Administrative fee

In short

An administrative fee is a charge by the lender to cover various administrative tasks related to setting up and managing your loan. These can sometimes be rolled into overall closing costs.

What it means in a deal

Be aware that specific administrative fees are generally prohibited by SBA rules for 7(a) loans, similar to application fees. Lenders can charge "reasonable" packaging or closing costs, but they must be for services actually rendered and disclosed. Review your commitment letter carefully for all fees.

Official sources

SOP 50 10 — Lender and Development Company Loan Programs

U.S. Small Business Administration · SBA Standard Operating Procedure

Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.

Common questions about Administrative fee

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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.

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