Glossary · The loan itself
Servicing Agreement
In short
A contract outlining the responsibilities of a loan servicer, who manages all aspects of a loan after it closes, including collecting payments and handling defaults.
What it means in a deal
While you interact with your lender, they may delegate some day-to-day loan management to a third-party servicer. This agreement defines their roles and responsibilities. You don't directly sign this, but understanding it helps clarify who to contact for payment inquiries or issues.
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 Servicing Agreement
- 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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