Glossary · The loan itself
Ongoing guaranty fee
In short
This is an annual fee paid by your lender to the SBA, passed on to you as part of your loan costs. It ensures the SBA continues to back a portion of your loan, reducing risk for the lender.
What it means in a deal
This fee is usually a small percentage of the outstanding guaranteed principal balance. It's often bundled into your monthly loan payment or collected annually. Understand how it's calculated and when it's due to accurately project your overall debt service.
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 Ongoing guaranty fee
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- Beyond the upfront guaranty fee, what other ongoing fees or charges are associated with an SBA 7(a) loan?
- How is the ongoing servicing fee calculated and remitted to the SBA?
- Can the lender charge application fees or underwriting fees in addition to the SBA guaranty fee?
- 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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