SBA Eliminates Certain Loan Fees

The Small Business Administration announced the elimination of most fees on SBA 7(a) and 504 loan programs. The loan guarantee fee for certain 7(a) loans will be completely eliminated until the end of the year, or until funds dedicated to that purpose are spent. On 504 loans, the SBA is temporarily eliminating the third-party participation fees, and CDC processing fees. Those in the market to finance a casino or other gambling establishment, an aquarium, zoo, golf course or swimming pool, are out of luck, though, as the Recovery Act prohibits use of funds in the program for these types of projects. To read the SBA Policy Notice delineating the details of the fee elimination provisions, visit www.sba.gov/idc/groups/public/documents/sba_homepage/policy_notice_fees_031609.pdf , the SBA website. The agency also announced that the maximum 7(a) loan guarantee has increased to 90 percent in most cases. Linda Coburn