Glossary · The loan itself
Ongoing servicing fee
In short
This is an annual fee charged by the SBA to the lender for their guarantee, which the lender passes directly to you, the borrower. It's a recurring cost that adds to your overall loan expense.
What it means in a deal
The ongoing servicing fee is a percentage of the outstanding guaranteed portion of your loan, currently 0.34% for most loans. It's typically included in your monthly payment. Factor this into your total project costs and future debt service calculations, as it's a fixed cost for the life of the loan.
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 servicing fee
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- How is the ongoing servicing fee calculated and remitted to the SBA?
- 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?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- How does the ongoing servicing fee affect the annual percentage rate (APR) calculation 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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