Glossary · The loan itself
Annual Service Fee
In short
This is a yearly fee the SBA charges the lender for guaranteeing your loan, which lenders typically pass on to you. It's an ongoing cost factored into your monthly loan payments.
What it means in a deal
The annual service fee is paid throughout the life of your 7(a) loan, separate from the upfront guaranty fee. It's a percentage of the outstanding principal balance and is usually included in your regular debt service. Factor this into your total cost of borrowing, as it impacts your monthly cash outflow.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Annual Service Fee
- When is the annual service fee waived for a 7(a) loan?
- How is the ongoing annual service fee for an SBA 7(a) loan determined?
- 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?
- How does a lender calculate the ongoing servicing fee (annual service fee) due to the SBA for a 7(a) loan?
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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