SBA eliminates fees on smaller loans

Responding to calls to encourage smaller loans, the SBA has recently made two important changes to its fee structures. SBA Information Notice 5000-1288 (released September 24, 2013) announced a reduction in the annual service fee for all 7(a) loans and a reduction in the upfront guaranty fee for all 7(a) loans in the amount of $150,000 or less. For loans of $150,000 or less, “Both the yearly fee and the upfront guaranty fee will be zero.

Norris Lozano, Chief Executive Officer of BusinessUS, commented, “This action by SBA can potentially be a big win for American small businesses. Any reduction in business costs gives small business a better chance to compete and create new jobs.”

The fee reduction will take effect January 1, 2014, and remain in effect for the 2014 entire fiscal year.

~ BusinessUS