SBA Provides Fee Relief and Savings for Small Business Borrowers

By |2017-09-14T11:21:14-07:00March 26th, 2014|

Piggy Bank

Small Businesses have saved more than $6.3M nationwide in fees that were eliminated,” says the SBA.

Small business borrowers who receive SBA 7(a) guaranteed loans of $150,000 or less during Fiscal Year 2014 (October 1, 2013 – September 30, 2014) are the main benefactors of the SBA Small Loan Guaranty Fee Relief Initiative, but SBA Lenders will also see savings.

“The ongoing monthly fee paid by SBA lenders will be eliminated for the entire life of 7(a) loans of $150,000 or less made while the initiative is in effect,” says the SBA.

While new savings are being created for some small businesses, the SBA says that “fees collected from larger loans are expected to offset any losses sustained from the smaller ones.”

Photo credit: Alan Cleaver, Flickr