Glossary · The loan itself
Annual Ongoing Servicing Fee(Annual Service Fee, Annual Guarantee Fee)
In short
A small yearly fee paid by the borrower to the SBA for maintaining the loan guarantee, calculated on the outstanding guaranteed portion. Buyer cares because it's an additional, ongoing cost of having an SBA loan.
What it means in a deal
Besides the Upfront Guaranty Fee, you'll pay an Annual Ongoing Servicing Fee. This fee is typically collected monthly by your lender and remitted to the SBA. It's a minor but permanent cost of your 7(a) loan, so factor it into your financial projections and debt service calculations.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
Related terms
Common questions about Annual Ongoing Servicing Fee
- When is the ongoing SBA servicing fee (annual service fee) for a 7(a) loan typically collected from the lender?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- How does a lender calculate the ongoing servicing fee (annual service fee) due to the SBA for a 7(a) loan?
- How does the ongoing servicing fee affect the annual percentage rate (APR) calculation for a 7(a) loan?
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- How is the ongoing servicing fee calculated and remitted to the SBA?
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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