The Small Business Administration’s yearlong zero loan fee initiative, which waives borrower fees on SBA-guaranteed loans up to $150,000, will end Sept. 30, the last day of the 2014 federal fiscal year.
“With borrowers eligible to save up to $2,250 with the fee waiver, this is a great opportunity for small businesses that need capital to obtain it with less cost, allowing their bottom line and profit margins to increase,” said Gregg White, deputy director of the SBA’s L.A. district office.
Since the initiative launched in October 2013, the SBA has backed 428 loans to L.A. small businesses of $150,000 and under as of Aug. 31, and this accounts for 40% of all SBA loans made in the state. The average loan size was $70,000, and eligible businesses saved an average of $1,000 per loan. More than half of the loans went to startups that were less than 2 years old.
The agency has also waived the borrower fee for all loans made to veterans through its SBA Express Program through Sept. 30. The program supports loans of up to $350,000.
For more information about the zero-fee initiative and a list of participating lenders, call The SBA Loan Experts at 800-722-5956.