The U.S. Small Business Administration is extending fee relief on 7(a) loans into next year of $150,000 or less that was implemented last year, and originally slated to expire last month. SBA Veterans Advantage will be renewed and enhanced as well.
“We don’t want SBA fees to be an impediment to getting capital out to communities where it can make a game-changing difference, especially to our underserved communities, who use these small-dollar loans more frequently,” said SBA administrator Maria Contreras-Sweet, in a release. “We also owe a debt of gratitude and so much more to our servicemen and women, and veterans who are the cornerstone of small business ownership.”
The SBA has guaranteed more than 28,800 loans for more than $1.74 billions, each less than $150,000. That was up from 23,200 loans and $1.34 billion the year before.
Fee reductions on these loans resulted in nearly $19 million in savings to small business borrowers last year.
More than 70 percent of all SBA loans made to veterans are less than $350,000. Through Sept. 20, the SBA guaranteed 153 loans for $38.9 million under Veterans Advantage. Fee relief of those loans resulted in savings to borrowers of about $571,000.
For more information, visit SBA.gov.
