Glossary · The loan itself
Application fee
In short
An application fee is a charge by some lenders for processing your loan application. It covers initial administrative costs, but not all lenders charge one for SBA 7(a) loans.
What it means in a deal
While some lenders might charge a small fee, SBA rules generally prohibit lenders from charging application fees for 7(a) loans. Any upfront costs should be clearly disclosed as part of the lender closing costs or packaging fee. Question any significant application fees you encounter.
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.
Related terms
Common questions about Application fee
- Can the lender charge application fees or underwriting fees in addition to the SBA guaranty fee?
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- When is the upfront SBA guaranty fee typically due during the loan application or closing process?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- Can the lender charge an additional "packaging fee" on top of the SBA fees?
- Beyond the upfront guaranty fee, what other ongoing fees or charges are associated with an SBA 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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