SCORE is pleased to inform everyone that all lenders who participate in the Small Business Administration Express Loan program have had upfront guaranty fees for loans up to $150,000 eliminated for the rest of the Federal Fiscal Year which means until September 30, 2014.
On loans with maturities of more than one year, the normal fee is 2 percent of the SBA- portion on loans up to $150,000.
On loans under $150,000 made under the SBA Express Loan Program after October 1, 2013, the SBA guaranty fees will be set at zero percent. The SBA Express Loan Program, which supports loans under $350,000, is SBA’S most popular loan delivery method, with nearly 60 percent of all 7(A) loans over the past decade being authorized through the program.
This could easily amount to a $2,000 savings to the entrepreneur on the day of the loan closing.