SBA Reduces Fees for Small Businesses
Fargo, ND – The Small Business Administration (SBA) has temporarily suspended its 2 percent loan-guarantee fee for loans of $150,000 and less. Small business borrowers will save up to $2,550 in fees, which they can reinvest in their business.
“This reduction in fees is expected to help increase funding available to small business, spur the economy, and create more jobs,” said Michael Gallagher, SBA’s North Dakota District Director.
In addition, through the Veterans Advantage initiative, SBA is waiving the guaranty fee on loans of up to $350,000 made to Veterans through the SBA Express program. This program is a popular source of smaller SBA 7(a) loans because of its streamlined paperwork and quick turnaround times.
In order to qualify for the Veterans Advantage fee waiver, a lender must process the loan under SBA’s Express loan program and the business must be 51 percent or more owned and controlled by an individual or individuals in one or more of the following groups:
- Veterans (other than dishonorably discharged);
- Service-Disabled Veterans;
- Active Duty Military service member participating in the military’s Transition Assistance Program (TAP);
- Reservists and National Guard members; or
- Current spouse of any of the above or the widowed spouse of a service member who died while in service or of a service-connected disability.
“The Veterans Advantage initiative is a great way to give back to our Veterans and thank them for their service to our country. The fee on larger loans is 3 percent so this will create a big savings for our Veterans who need financing for their small businesses,” stated Michael Gallagher, SBA’s North Dakota District Director.
North Dakota businesses received 210 SBA-guaranteed loans valued at $95 million in the fiscal year ended September 30, 2013. Of those, the SBA backed $4.7 million in loans to 17 Veteran-Owned businesses. Over 40 banks, credit unions and community lenders participated in these programs.
Both these initiatives end on September 30, 2014. For more information, contact the SBA’s North Dakota District Office at 701.239.5131.