SBA SOP 50 10 8, A.Ch4.C.3 — Fees the Borrower Pays to SBA

sba-sop-a-ch4-c-3

Verbatim text of SBA SOP 50 10 8 section A.Ch4.C.3 (Fees the Borrower Pays to SBA), effective 2025-06-01. 1 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.

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source:
  type: regulation
  id: sba-sop-a-ch4-c-3
  authority: SBA SOP 50 10 8, A.Ch4.C.3 — Fees the Borrower Pays to SBA
  description: Verbatim text of SBA SOP 50 10 8 section A.Ch4.C.3 (Fees the Borrower Pays to SBA), effective 2025-06-01. 1 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
  url: https://www.sba.gov/document/sop-50-10-business-loan-program-requirements
  effective_date: '2025-06-01'
  date_basis: stated on the SOP cover
obligations:
  - id: sba-sop-a-ch4-c-3-1
    canonical_id: sba-sop-a-ch4-c-3-1
    section: SOP 50 10 8 A.Ch4.C.3
    description: Fees the Borrower Pays to SBA
    type: requirement
    audit_question: ''
    program_review: ''
    file_review: ''
    judgment: false
    feeds: []
    workflow_phase: ''
    owner_role: ''
    secondary_owner_role: ''
    cadence: ''
    consequence: ''
    tags:
      - sba
      - sop-50-10-8
      - 7a
      - '504'
      - business-loan
    primary_source:
      tier: 1
      authority: SBA SOP 50 10 8, A.Ch4.C.3 — Fees the Borrower Pays to SBA
      source_class: sba-sop
      source_url: https://www.sba.gov/document/sop-50-10-business-loan-program-requirements
      snapshot_id: 535743ffe062cc34
      fetched_at: '2026-09-02T00:21:32Z'
      content_hash: sha256:535743ffe062cc34143fec7d31981b90a464bbdd735c4a991fa31af5c9499470
      paragraph_quote: 3. Fees the Borrower Pays to SBA Subsidy Recoupment Fee 13 CFR § 120.223 For loans with a maturity of 15 years or longer, the Borrower must pay to SBA a Subsidy Recoupment Fee when the Borrower voluntarily prepays more than 25% of its loan in any 1 year during the first 3 years after first disbursement. The fee is 5% of the prepayment amount during the first year, 3% the second year, and 1% in the third year. SBA does not consider death that results in a prepayment a voluntary occurrence. No determination by SBA is required in this circumstance, and the 7(a) Lender must confirm and document their file. If the 7(a) Lender otherwise believes that the prepayment of the loan is not voluntary, the 7(a) Lender may submit a request for a determination, with the 7(a) Lender’s supporting analysis, to the appropriate CLSC. The CLSC will submit the request, along with its recommendation to the Director of the Office of Financial Program Operations (D/OFPO) and the D/FA or designee for a joint determination as to whether a prepayment is involuntary.
      drafter_attestation: Verbatim section A.Ch4.C.3 of SBA SOP 50 10 8, effective 2025-06-01. Cut by scripts/parse-sba.py and carried with gate 'contiguous-section-substring-verified' — the quote is a contiguous substring of the source PDF, not retyped or summarised.
      effective_date: '2025-06-01'

Verbatim regulatory text (1)

Verbatim provisions from SBA SOP 50 10 8, A.Ch4.C.3 — Fees the Borrower Pays to SBA — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

SOP 50 10 8 A.Ch4.C.3

Effective 2025-06-01 · publisher's stamp for this provision

3. Fees the Borrower Pays to SBA Subsidy Recoupment Fee 13 CFR § 120.223 For loans with a maturity of 15 years or longer, the Borrower must pay to SBA a Subsidy Recoupment Fee when the Borrower voluntarily prepays more than 25% of its loan in any 1 year during the first 3 years after first disbursement. The fee is 5% of the prepayment amount during the first year, 3% the second year, and 1% in the third year. SBA does not consider death that results in a prepayment a voluntary occurrence. No determination by SBA is required in this circumstance, and the 7(a) Lender must confirm and document their file. If the 7(a) Lender otherwise believes that the prepayment of the loan is not voluntary, the 7(a) Lender may submit a request for a determination, with the 7(a) Lender’s supporting analysis, to the appropriate CLSC. The CLSC will submit the request, along with its recommendation to the Director of the Office of Financial Program Operations (D/OFPO) and the D/FA or designee for a joint determination as to whether a prepayment is involuntary.

Source: SBA SOP 50 10 8, A.Ch4.C.3 — Fees the Borrower Pays to SBA · source URL · snapshot 535743ffe062cc34

Operationalizing SBA SOP 50 10 8, A.Ch4.C.3 — Fees the Borrower Pays to SBA

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Source of record: https://claudeforcompliance.com/regs/sba-sop-a-ch4-c-3/ · register sba-sop-a-ch4-c-3 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.