[Code of Federal Regulations] [Title 13, Volume 1] [Revised as of January 1, 2003] From the U.S. Government Printing Office via GPO Access [CITE: 13CFR120.220] [Page 224] TITLE 13--BUSINESS CREDIT AND ASSISTANCE CHAPTER I--SMALL BUSINESS ADMINISTRATION PART 120--BUSINESS LOANS--Table of Contents Subpart B--Policies Specific to 7(a) Loans Sec. 120.220 Fees that Lender pays SBA. (a) The Lender pays a guarantee fee to SBA for each loan as follows: ---------------------------------------------------------------------------------------------------------------- Fee measured as Guaranteed portion of loan percentage of When payable Lender may get fee When SBA refunds guaranteed portion from borrower fee from borrower ---------------------------------------------------------------------------------------------------------------- 12 Months or less............... .25%.............. With Guarantee When SBA Approves If Application Application. Loan. Withdrawn or Denied.\1\ More Than 12 months and Total 2.0% of Guaranteed Within 90 days of After First If Loan Cancelled Guaranteed Portion Is $80,000 Portion. SBA Approval. Disbursement. and Never or Less. Disbursed. More Than 12 Months and Amount 3%................ Within 90 Days of After First If Loan Cancelled of Guaranteed Portion of Loan SBA Approval. Disbursement. and Never That Is $250,000 or Less. Disbursed. More Than 12 Months and Amount 3.0% of 1st Within 90 Days of After First If Loan Cancelled of Guaranteed Portion of Loan $250,000 plus SBA Approval. Disbursement. and Never Between $250,000 and $500,000. 3.5% of balance. Disbursed. More Than 12 Months and Amount 3.0% of 1st Within 90 Days of After First If Loan Cancelled of Guaranteed Portion of Loan $250,000 plus SBA Approval. Disbursement. and Never Exceeding $500,000. 3.5% of next Disbursed. $250,000 plus 3.875% of the Amount Exceeding $500,000. ---------------------------------------------------------------------------------------------------------------- \1\ Also, if SBA substantially changes the Lender's loan terms and approves the loan, but the modified terms are unacceptable to the Borrower or Lender. (The Lender must request refund in writing within 30 calendar days of the approval). (b) If the guarantee fee is not paid, SBA may terminate the guarantee. The Borrower may use working capital loan proceeds to reimburse the Lender for the guarantee fee. Acceptance of the guarantee fee by SBA shall not waive any right of SBA arising from the Lender's misconduct or violation of any provision of this part, the guarantee agreement, the Authorization, or other loan documents. (c) The Lender shall also pay SBA an annual service fee equal to 0.5 percent of the outstanding balance of the guaranteed portion of each loan. The service fee cannot be charged to the Borrower. SBA may institute a late fee charge for delinquent payments of the annual service fee to cover administrative costs associated with collecting delinquent fees. [61 FR 3235, Jan. 31, 1996; 61 FR 11471, Mar. 20, 1996]