Glossary · Doing the deal
Loan servicing
In short
The ongoing process of administering a loan after it's been disbursed, including collecting payments, managing escrow, handling inquiries, and addressing defaults.
What it means in a deal
After closing, your loan will enter the servicing phase. This includes making your principal and interest payments on schedule. If you face financial difficulties with the business, you'll work with your servicer of record to explore options like deferment, which impacts the SBA guaranty.
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 Loan servicing
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- What servicing actions require prior written SBA approval?
- How are the ongoing servicing fees for an SBA 7(a) loan calculated and paid?
- How does an unapproved material servicing action impact the SBA's 7(a) loan guaranty?
- How is the ongoing servicing fee calculated and remitted to the SBA?
- Can a lender approve a collateral substitution without prior SBA approval during 7(a) loan servicing?
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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