A little-known aspect of the Small Business Jobs Act of 2010 is the temporary waiver on fees for some loans guaranteed by the Small Business Administration (SBA).
A little-known aspect of the Small Business Jobs Act of 2010 is the temporary waiver on fees for some loans guaranteed by the Small Business Administration (SBA). The fees, which can range from two to 3.5 percent of the loan amount, can be substantial on high-value loans. While some business borrowers may not feel the pinch, since the fees are typically rolled-into the financing of the loan and not charged upfront, the fee waivers still account for significant savings – especially if the loan value is high.
For example, consider a recent article in the Burlington Free Press, highlighting a few of New England’s small business owners who took advantage of the fee waiver. One businessman saved $53,750 in fees on a $2 million loan, while another is reported to have saved $17,500 in fees on a $1 million loan.
Unfortunately, the temporary fee waiver is set to expire on December 31st, and is unlikely to be renewed. The SBA is encouraging small-business owners to get their banks or credit unions quickly if they need to take out a loan so they can get in on the savings. With expedited processing, the SBA says it is still possible to get something done before the end of the month.Tags: banks, loans, Small Business Administration, small business owners