December 3, 2013
Veterans will get a break on Small Business Administration (SBA) loans beginning January 1, 2014.
Exempting Veterans from paying fees on these loans “is part of SBA’s broader efforts to make sure that Veterans have the tools they need to start and grow a business,” said Acting Administrator Jeanne Hulit.
The SBA announced it will charge no upfront borrower fees on loans of up to $350,000 made to Veterans through its SBA Express program. This program is a popular source of smaller SBA 7(a) loans because of its streamlined paperwork and quick turnaround times.
In fiscal 2013, the agency backed $1.9 billion in loans to 3,094 Veteran-Owned businesses.
Veteran-Owned Small Businesses won more than $12.2 billion in federal contracting business in fiscal 2012. And for the first time ever, the federal government exceeded the 3 percent goal to contract with Service Disabled Veteran-Owned Small Businesses.
But Veterans aren’t the only ones who received a break from the SBA this year. The agency also is charging zero fees on all loans of less than $150,000. Small businesses will save more than $2,500 in fees.