Print
Banking & Finance

SBA Extends Waiver Of Borrower Fees

By Jenny Callison, posted Jan 7, 2015
The U.S. Small Business Administration announced that it would extend until Sept. 30 two popular programs that waived the borrower fee, and reduce the fee for some other loans.

Mike Ernandes, spokesman for the SBA North Carolina District Office, said that the fees – called upfront guaranty fees – for small business borrowers and for participants in the SBA’s Veterans Advantage program will continue to be reduced to zero through the remainder of the federal fiscal year, which runs from Oct. 1 to Sept. 30. The fee waiver was originally scheduled to end Sept. 30, 2014.

The fee, which basically helps cover administrative costs of lending, is levied only on the portion of a loan that is guaranteed by the SBA, Ernandes explained. SBA 7(a) loans – the most common kind – are made through large and small banks, credit unions and non-bank lenders, with the SBA guaranteeing a portion of the loan.

The fee, normally 2 percent, will be waived for loans whose total amount is $150,000 and under, according to the SBA announcement. It will also be waived for SBA Veterans Advantage loans of $150,000 to $350,000.

“Veterans Advantage borrowers get the blanket fee waiver for loans of $150,000 or less,” Ernandes said.

To qualify for consideration for a Veterans Advantage loan, according to the SBA announcement, a business must be 51 percent or more owned and controlled by an individual or individuals who are veterans; service-disabled veterans; active duty military service members participating in the military’s Transition Assistance Program; the current spouse of any veteran, active duty service member, reservist or National Guard member; or the widowed spouse of a service member who died while in service or who died as the result of a service-connected disability.

Ernandes said the SBA is also reducing by 50 percent the rate of the upfront guaranty fee for non-SBA Express loans of $150,000 to $5 million.
Ico insights

INSIGHTS

SPONSORS' CONTENT
Yasminheadshotwithlogo

Why Volunteer for a Nonprofit Board?

Yasmin Tomkinson - Cape Fear Literacy Council
Susan willett 300x300

Fighting Alzheimer’s: A Debilitating Condition Many of Us Will Face

Susan Willett - Old North State Trust, LLC
Geofflosee300x300 10221511305

Purpose and Passion: The Coggins Create New Scholarship for UNCW

Geoffrey Losee - Rountree Losee LLP

Trending News

Local Airbnb Hosts Earned Nearly $11M In 2017

Cece Nunn - Jan 15, 2018

Business Community Remembers Beth Quinn, Co-founder Of She Rocks

Christina Haley O'Neal - Jan 17, 2018

Investor Buys Leland Industrial Park Property

Cece Nunn - Jan 15, 2018

Piano Bar And Lounge To Fill Aubriana's Downtown Spot

Cece Nunn - Jan 17, 2018

Made Mole Brewing Coming To Oleander Drive This Spring

Jessica Maurer - Jan 17, 2018

In The Current Issue

Keeping An Eye On Affordable Housing

Wilmington-area officials made some strides toward improving the local affordable housing picture in 2017, though the complicated issue is e...


True Blue Owner To Blend New, Traditional

Bobby Zimmerman has been thinking about opening his own restaurant for years. When the former Pembroke’s space opened in The Forum, he had w...


MADE: Making Inroads In A Medical Market

MADE in the Cape Fear: spotlighting goods manufactured in Southeastern North Carolina. Leland-based Lucid Innovative Technologies makes medi...

Book On Business

The 2017 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

WilmingtonBiz Expo - Keynote Lunch with John Gizdic, CEO, New Hanover Regional Medical Center
Wilmington's Most Intriguing People of 2017
2017 Health Care Heroes