Glossary · Doing the deal
Ongoing service fee
In short
A recurring charge from the SBA to the lender, which the lender typically passes on to the borrower, for the life of the loan. Buyers care because this fee adds to the total cost of your SBA loan, increasing your monthly payments.
What it means in a deal
This fee, often called the "annual service fee," is currently 0.55% of the outstanding guaranteed portion of the loan. It's paid quarterly by your lender to the SBA and is usually built into your interest rate or charged separately. Factor this into your debt service calculations.
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 service fee
- How is the ongoing annual service fee for an SBA 7(a) loan determined?
- 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?
- How does a lender calculate the ongoing annual service fee payable to the SBA for a 7(a) loan?
- Is the ongoing annual service fee for a 7(a) loan collected directly from the borrower by the SBA?
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
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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