SBA SOP 50 10 8.1, A.Ch4.C.2 — Fees and Expenses the Lender May Collect from the Applicant or Borrower

sba-sop81-a-ch4-c-2

Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section A.Ch4.C.2 (Fees and Expenses the Lender May Collect from the Applicant or Borrower). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 1 provision(s) quoted from SBA's .docx.

This register: .xlsx .csv

See also

SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.

Verbatim regulatory text (1)

Verbatim provisions from SBA SOP 50 10 8.1, A.Ch4.C.2 — Fees and Expenses the Lender May Collect from the Applicant or Borrower — 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 8.1 A.Ch4.C.2

Effective 2026-10-01 · publisher's stamp for this provision

7 sections · 9,064 characters of verbatim text. Open a section to read it, or . Every section below is in the page source whether open or closed.

§2. Fees and Expenses the Lender May Collect from the Applicant or Borrower294 ch
2. Fees and Expenses the Lender May Collect from the Applicant or Borrower In 13 CFR § 120.221, SBA provides specific guidance on the fees a 7(a) Lender or its Associates may collect from an Applicant or Borrower in connection with an SBA-guaranteed loan. a. Packaging Fees 13 CFR § 120.221(a)
iThe Lender may charge an applicant reasonable fees (customary for…592 ch
i. The Lender may charge an applicant reasonable fees (customary for similar Lenders in the geographic area where the loan is being made) for packaging. “Packaging services” include assisting the Applicant with completing one or more applications, preparing a business plan, cash flow projections, and other documents related to the application. The Applicant may not be charged for the same service by two different entities, and, if the Lender engages the services of a Lender Service Provider (LSP), it may not pass through to the Applicant any fees charged for work performed by the LSP.
iiThe Lender must advise the Applicant in writing that the…417 ch
ii. The Lender must advise the Applicant in writing that the Applicant is not required to obtain or pay for unwanted services. The Lender must itemize for the Applicant in writing any fees charged in association with the 7(a) loan. Itemization means listing the category of fees identified under 13 CFR § 120.221. SBA may review these fees at any time. Lender must refund any such fee considered unreasonable by SBA.
iiiAs part of its packaging fee, Lenders may charge fees associated…474 ch
iii. As part of its packaging fee, Lenders may charge fees associated with technology services (whether developed internally or purchased from a third party) for software or technology used in connection with preparing SBA loan documents, underwriting, or closing the SBA-guaranteed loan. Note: Entities providing technology services that include underwriting are considered to be LSPs and must be providing their services to the Lender under an SBA-reviewed LSP Agreement.
ivSBA permits the Lender to charge the Applicant a flat fee of up…230 ch
iv. SBA permits the Lender to charge the Applicant a flat fee of up to $2,500 per loan without documenting the service performed. The Lender must disclose any amounts charged to the Applicant by the Lender in the SBA Loan System.
vFor fee amounts in excess of $2,500, the Lender must complete an…808 ch
v. For fee amounts in excess of $2,500, the Lender must complete an SBA Form 159 in accordance with Paragraph D.8., Disclosure of Fees – SBA Form 159, in this Chapter. a) For fees charged on an hourly rate, the fees must be reasonable and customary for the services actually performed and consistent with fees charged on an hourly rate for the Lender’s similarly-sized non-SBA guaranteed commercial loans. b) For fees charged based on a percentage of the loan amount, the fee may not exceed what the Lender charges on a percentage basis for the Lender’s similarly-sized non-SBA guaranteed commercial loans or the following, whichever is less: i) 5% for loans $150,000 or less; ii) 3% for loans in excess of $150,000; iii) the maximum fee that may be charged to an Applicant on a percentage basis is $30,000.
viThe Lender may not split a loan into two loans for the purpose of…6,249 ch
vi. The Lender may not split a loan into two loans for the…724 ch
vi. The Lender may not split a loan into two loans for the purpose of charging an additional fee to the Applicant. Even if there is a legitimate business need for the Applicant’s loan request to be split into two loans (e.g., a term loan and a line of credit), the Lender may only charge the Applicant one fee within the maximums set forth above, based on the combined loan amounts. However, it is not SBA’s intention to restrict a Lender from charging a new fee if an Applicant subsequently returns to the Lender to apply for a new loan for a different project or purpose. (Loans approved more than 90 days apart are considered to be for a different project or purpose.) b. Extraordinary Servicing Fee. 13 CFR § 120.221(b)
iA Lender may not charge the Borrower a servicing fee on an…948 ch
i. A Lender may not charge the Borrower a servicing fee on an SBA-guaranteed loan unless the servicing fee is to cover expenses for extraordinary servicing requirements connected with the loan. Such a fee may not exceed 2% per year on the outstanding balance of the part of the loan requiring special servicing, unless otherwise specified in Section B, 7(a) Loan Program Specific Requirements. Examples of extraordinary servicing fees include amounts to service construction loans or monitor accounts receivable and inventory collateral in asset-based lending. In addition, if the Lender charges an extraordinary servicing fee on its similarly-sized, non-SBA guaranteed commercial loans, it may not charge a higher fee on its SBA-guaranteed loans. If the Lender does not charge an extraordinary servicing fee on its similarly-sized, non-SBA guaranteed commercial loans, it may not charge an extraordinary servicing fee on its SBA-guaranteed loans.
iiLenders must obtain SBA’s prior written approval for the fees in…1,157 ch
ii. Lenders must obtain SBA’s prior written approval for the fees in Subparagraph b. i. and b. ii. above and must include the extraordinary servicing fees to be charged to administer the loan/line in its credit memorandum. Lenders submitting applications under delegated authority must enter the amount of the fee to be charged in the SBA Loan System and certify in the credit memorandum that the fee is reasonable and prudent based on the level of extraordinary effort required. SBA’s issuance of a loan number will constitute its prior written approval of the fees, subject to SBA’s subsequent review of the fees for reasonableness. SBA will review such fees when conducting Lender oversight activities and at time of guaranty purchase. If SBA determines the fee is excessive, the Lender must reduce the fee to an amount SBA deems reasonable, refund any sum in excess of that amount to the Borrower, and refrain from charging or collecting from the Borrower any funds in excess of the amount SBA deems reasonable. SBA’s guaranty does not extend to extraordinary servicing fees and, at time of guaranty purchase, SBA will not pay any portion of such fees.
iiiThe following actions do not qualify as extraordinary servicing…3,420 ch
iii. The following actions do not qualify as extraordinary…607 ch
iii. The following actions do not qualify as extraordinary servicing and therefore a participating Lender is prohibited from collecting fees for these services: a) Changing the installment amount to avoid circumstances where the required payment amount will not be sufficient to pay the loan in full by the maturity date; b) Changing the installment amount after a deferment; c) Providing the release or exchange of collateral (standard out-of-pocket expenses such as recordation fees are permitted); or d) Any modification to the repayment terms of the note. c. Out-of-Pocket Expenses. 13 CFR § 120.221(c)
iThe Lender may collect from the Applicant necessary out-of-pocket…378 ch
i. The Lender may collect from the Applicant necessary out-of-pocket expenses such as filing or recording fees, photocopying, delivery charges, collateral appraisals and environmental investigation reports that are obtained in compliance with SBA policy, and other direct charges related to loan closing. These costs must be itemized and kept in the loan file for SBA’s review.
iiFees charged for legal services must be for services performed by…852 ch
ii. Fees charged for legal services must be for services performed by a licensed attorney, or someone working under the licensed attorney’s direct supervision, regardless of whether the attorney is in-house or outside counsel. a) Lenders may be reimbursed by the Applicant for the direct costs (including reasonable overhead) of legal services performed by the Lender’s in-house counsel in connection with an SBA-guaranteed loan, but in no event may the Lender be reimbursed for an amount that would exceed the cost of outside counsel. b) In accordance with 13 CFR § 120.221(e), charges for legal services must be charged on an hourly basis. The Lender or its Associate may not pass on to the Applicant/Borrower any cost of legal services not calculated on an hourly basis for services provided in connection with the Applicant/Borrower’s transaction.
iiiDirect costs associated with out-of-pocket expenses described in…1,583 ch
iii. Direct costs associated with out-of-pocket expenses described in this section in connection with the loan closing should not be reported on SBA Form 159, but must be available for SBA review when conducting lender oversight activities. d. Late Payment Fee. 13 CFR § 120.221(d) Lenders may charge the Borrower a late payment fee not to exceed 5% of the regular loan payment when the Borrower is more than 10 days delinquent on its regularly scheduled payment. The fee is the property of the Lender and is not shared with the investor if the loan is sold into the Secondary Market. SBA’s guaranty does not extend to late fees and, at time of guaranty purchase, SBA will not pay any portion of such fees. e. Assumption Fee. Lenders should review SBA’s SOP 50 57, 7(a) Loan Servicing and Liquidation, for procedures to process an assumption request. i. In the case of an assumption of the loan by another entity, SBA does not require a new guaranty fee, and lien positions are often maintained eliminating the need for recording fees. As an incentive for a 7(a) Lender to retain an existing loan, SBA allows a 7(a) Lender to charge an assumption fee that is consistent with its assumption fee the 7(a) Lender charges on its non-SBA guaranteed loans. The fee must be reasonable in relation to services provided and cannot exceed 1 percent of the principal balance outstanding at time of assumption. SBA’s guaranty does not extend to assumption fees and, at time of guaranty purchase, SBA will not pay any portion of such fees. ii. This fee may be paid by the seller or the assumptor.

Source: SBA SOP 50 10 8.1, A.Ch4.C.2 — Fees and Expenses the Lender May Collect from the Applicant or Borrower · source URL · snapshot 0fb0c4692cf52938

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Source of record: https://claudeforcompliance.com/regs/sba-sop81-a-ch4-c-2/ · register sba-sop81-a-ch4-c-2 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.