WASHINGTON – The Small Business Administration is waiving all fees on 7(a) loans in the amount of $150,000 or less starting Oct. 1.
The SBA determined to eliminate the fees on loans of $150,000 or less after conducting a review of the 7(a) Loan Program. As a result, a small business owner obtaining a $150,000 loan will save more than $2,500.
The 7(a) Loan Program is the SBA’s primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels.
Vermont small business owners have greater potential to take advantage of the waiver than those in other states and territories because the average 7(a) loan made in Vermont is $132,000 whereas the national average 7(a) loan is $375,000.
The SBA does not make direct loans, it guarantees loans made and administered by commercial lending institutions.
Most banks and credit unions in Vermont are SBA participating lenders.
To find an SBA lender, visit www.sba.gov/vt or for more information, call 802-828-4422.