# 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.

Canonical page: https://www.sbaexpress.loans/answers/sba-annual-service-fee/
Last checked: 2026-11-08

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 collateral. 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).

## Sources

- [SBA Information Notice 5000-881797, FY2027 7(a) fees, pp. 1-2 (effective October 1, 2026)](https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees)
- [13 CFR § 120.220(f), Lender's annual service fee](https://www.ecfr.gov/current/title-13/section-120.220)
- [13 CFR § 120.221(b), Extraordinary servicing](https://www.ecfr.gov/current/title-13/section-120.221)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.1.b (about p. 66) and Para. C.2.b (about p. 68)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)