Glossary · Doing the deal
Servicing
In short
The ongoing management of your loan by the lender after closing, including collecting payments, handling inquiries, and managing any issues that arise. Effective servicing is crucial for the life of your loan.
What it means in a deal
Post-closing, your lender or a third-party servicer will manage your 7(a) loan. This includes processing your monthly payments, managing escrow accounts for taxes/insurance, and addressing any requests for changes to the loan terms. Maintain open communication with your servicer, especially if you foresee payment difficulties.
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 Servicing
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- What servicing actions require prior written SBA approval?
- How is the ongoing servicing fee calculated and remitted to the SBA?
- Which servicing actions can a 7(a) lender take without prior SBA approval?
- What servicing actions can a 7(a) lender take without prior SBA approval?
- What collateral servicing actions require prior SBA approval versus those delegated to 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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