The Small Business Administration has set loan fees to zero for SBA-supported loans under $150,000. Acting SBA Administrator Jeanne Hulit made the announcement in Washington, D.C., Oct. 30.
“At SBA we’re always looking for ways we can better serve our customers - small business owners and entrepreneurs looking to start or grow their business,” Hulit said. “We’re constantly looking for ways we can make it easier and cheaper for small business owners to reinvest in their business, expanding and creating jobs along the way.”
Effective Oct. 1, setting fees at zero will make these loans cheaper for borrowers, encouraging lending to small businesses that face the most constraints on credit access. Cheaper loans create increased lending opportunities.
“This is good for businesses, and the neighborhoods and communities in which they’re located,” said SBA Mid-Atlantic Regional Administrator Natalia Olson-Urtecho. “Lower-dollar loans often help finance new startups and entrepreneurs in underserved communities, which can include women, minorities, veterans and others. In fact, SBA loans are three to five times more likely to go to women and minority-owned businesses than conventional loans.”
This initiative is the latest in the SBA’s efforts to reach more business owners and entrepreneurs with the ideas, vision, and passion necessary to tackle the next challenge in their businesses.
More information about the 7a loan program and other Small Business Administration programs is available at www.sba.gov.