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SBA Zeroes out Fees on Small Loans and Provides Additional Fee Incentives for Veterans

Over $1 Million in Fee Savings Generated by the Massachusetts Lender Network
Release Date: 
Thursday, July 28, 2016
Release Number: 
16-22
Advisory Number: 
16-22
Contact: 
Norman Eng (617) 565-8510

Boston – The SBA lender network in Massachusetts together helped reach a huge milestone in small business lending again this fiscal year.  Over one million dollars in fee savings have been achieved for the third year in a row.  

Since implementing the Fee Waiver Initiative in 2013, the SBA has continued reinstating the popular savings program at the end of every fiscal year on all SBA-supported loans $150,000 and under – making it cheaper for all small business owners to reinvest in their business, expand and create jobs. 

As of June 2016, the total estimated borrower fee relief in Massachusetts reached: $1,154,661

“Anytime we can save small businesses money to help them maintain cash flow to grow their businesses and create jobs, it is a good news story -- and here in the Commonwealth, our lender network is leading the nation in low dollar loans and reaching out to veterans so that they understand the special incentives under the Veterans Advantage program,” said Robert Nelson, SBA Massachusetts District Director.

The Veterans Advantage program, offers qualified veterans (including National Guard, Reservist and their spouses) further reductions in two additional ways: 1. the 3% up-front guarantee fee on Express Loans $150,001 to $350,000 have been set to $0; 2. the up-front guaranty fee for 7(a) loans of $150,001 to $5 million are reduced by 50%.   Both incentives are in place until 9/30/2016. 

 

About SBA Veterans Advantage
Eligibility: Small businesses owned and controlled (51% or greater) by veterans; Active-duty military participating in the Transition Assistance Program; Reservists; National Guard members; The spouses of those listed;  Widowed spouses of service members or veterans who died during service or as a result of service-related disabilities.

 

Three ways for veterans and their spouses to save:

1. 7(a) loans $150,000 and under

 

2. Express Loans $150,001 to $350,000 

Two page application and expedited approval. 50% SBA guarantee.

  • 3% up-front guarantee fee is waived for veteran borrowers only (listed above) until 9/30/2016.
  • SBAExpress

 

3. 7(a) Loans $150,001 to $5 million

  • Terms up to 10 years for equipment and working capital and up to 25 years for real estate.  75% SBA guarantee.
  • Up-front fees for veteran borrowers (listed above) reduced by 50% until 9/30/2016.

 

For more information, please visit www.sba.gov or www.sba.gov/ma

 

 

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