Do I pay the SBA annual service fee on a 7(a) loan?
Short answer
No. For FY2027 the lender pays SBA 0.55% of the outstanding guaranteed balance each year. It may not charge that fee to you, under 13 CFR § 120.220(f) and SBA Information Notice 5000-881797.
The Lender's Annual Service Fee is a cost the lender owes SBA. SBA Information Notice 5000-881797 (p. 1) sets it at 0.55% of the outstanding guaranteed balance for loans approved in FY2027. The notice says lenders may not pass it on to the borrower. 13 CFR § 120.220(f) says the same.
How it works
- The lender pays monthly with SBA Form 1502 (SOP 50 10 8.1, Section A, Chapter 4, Para. C.1.b, about p. 66).
- SBA sets the fee each fiscal year for loans approved that year.
- Two loans made within 90 days are not combined for this fee.
- On a $250,000 guaranteed balance, the fee runs about $1,375 a year. It shrinks as the balance falls.
Not covered by the FY2027 waiver
The 0% waiver for manufacturers, listed food businesses and rural businesses applies to the Upfront Fee. The notice does not waive the Annual Service Fee on 7(a) loans.
Other servicing charges
A lender generally may not charge you a servicing fee either. The exception is extraordinary servicing, such as monitoring asset-based collateralProperty a lender can take and sell if a loan is not repaid. . That fee needs SBA's prior written approval. It cannot exceed 2% a year on the balance needing special servicing, unless a program rule says otherwise (13 CFR § 120.221(b); Para. C.2.b, about p. 68).
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