Glossary · The loan itself
Servicing fee
In short
An ongoing fee paid by the SBA to the lender for managing the 7(a) loan throughout its term. This is typically a percentage of the outstanding balance.
What it means in a deal
This fee is part of the lender's compensation for administering your loan, including collecting payments and handling inquiries. While it's paid by the SBA to the lender, it's factored into the overall cost structure of the 7(a) program, impacting the lender's willingness to make 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 Servicing fee
- Are there annual servicing fees or other recurring charges beyond the SBA 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?
- 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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