Glossary · The loan itself
Transfer Fee
In short
A fee charged by some lenders when a loan is transferred or assumed by a new borrower, or when ownership of the underlying asset changes.
What it means in a deal
While not a standard SBA 7(a) loan origination fee, some existing loans might have provisions for transfer fees, especially if you are assuming an existing loan. In most SBA acquisitions, you will be taking out a brand-new loan for an asset purchase, so this is typically not a concern. However, if you are doing a stock purchase and assuming the seller's existing debt, check the loan agreement for this fee.
Related terms
Common questions about Transfer Fee
- Can an SBA 7(a) loan cover the cost of a franchise transfer fee in an acquisition?
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?
- Can the lender charge application fees or underwriting fees in addition to the SBA guaranty fee?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- Can the lender charge an additional "packaging fee" on top of the SBA fees?
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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