Glossary · The loan itself
Finance Charge
In short
The total dollar amount you pay to use credit. This includes interest and other fees, representing the full monetary cost of your loan.
What it means in a deal
In an SBA 7(a) loan, the finance charge includes all interest payments over the life of the loan, plus the upfront SBA guaranty fee and any ongoing servicing fees. Be sure to get a clear breakdown of all these charges from your lender to understand the true financial burden.
Related terms
Common questions about Finance Charge
- Does the SBA charge any fees to me directly for applying?
- Does the SBA tell lenders exactly what interest rate they must charge?
- Does the SBA charge me any ongoing fees after my loan is approved?
- Can the lender charge an additional "packaging fee" on top of the SBA fees?
- Are there caps on the interest rates lenders can charge for SBA 7(a) loans?
- Does the SBA itself charge any direct fees to the borrower, or just 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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