Glossary · The loan itself
Annual oversight fee
In short
An annual fee paid to the SBA for their ongoing oversight of your loan. This is a small percentage of the outstanding guaranteed balance, added to your monthly payments.
What it means in a deal
This fee, typically 0.55% of the outstanding guaranteed portion of your loan, is collected by your lender and remitted to the SBA. It's part of the total cost of your SBA loan, so factor it into your repayment capacity 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 oversight fee
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- Are there any annual fees I must pay on an SBA 7(a) loan after the upfront guaranty fee?
- When is the annual service fee waived for a 7(a) loan?
- What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?
- What is the process for a lender to remit the upfront guaranty fee and annual service fee to the SBA?
- When is the ongoing SBA servicing fee (annual service fee) for a 7(a) loan typically collected from the lender?
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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