SBA Fee Waivers

By: Dale Van Eckhout
Senior Area Manager
Bismarck Area Office
North Dakota District Office

SBA normally charges a loan guaranty fee to support  a loan loss reserve sufficient to cover any anticipated purchases on defaulted loans. This results in a 'zero subsidy' and allows the SBA to operate without Congress appropriating funds to cover such losses.

Each year, SBA assesses the fees to determine if they are sufficient to cover the cost of the program. Due to favorable economic forecasts, the SBA anticipates lower loan defaults and ultimately lower payouts on defaulted guaranteed loans. As a result, SBA is waiving the 2 percent guaranty fee on term loans of $150,000 and less, as well as the ongoing servicing fee of 0.52 percent. This reduction in fees is expected to help increase funding available to small business, spur the economy and create more jobs.

SBA Veterans Advantage Initiative

In addition, SBA is waiving the guarantee fees on SBAExpress loans to veterans. The maximum loan under this authority is $350,000 and will have no guarantee fee upon origination. The ongoing service fee, however, will apply to loans above $150,000. In order to qualify for these additional fee waivers, the lender must process the loan under the SBAExpress 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;
  • Activity Duty Military service member participating in the military's Transition Assistance Program (TAP);
  • Reservists and National Guard members; or
  • Current spouse of any Veteran, Active Duty service member, or any Reservist or National Guard member; or widowed spouse of a service member who died while in service or of a service-connected disability.

Please contact any of our offices for more information or with any questions on SBA programs and services: Fargo - 701-239-5131; Bismarck - 701-250-4303; Grand Forks - 701-746-5160.

Dale Van Eckhout has been the Bismarck area manager for the U.S. Small Business Administration since 2011, having formerly been Business and Cooperative Program Director and District Director for USDA Rural Development. He is a Certified Economic Development Professional and has received Accreditation from the American Society of Farm Managers and Rural Appraisers. He can be reached at