Owners of small Nebraska businesses have saved more than $36,000 in fees since Oct. 1 under a new policy for SBA-guaranteed loans of less than $150,000, the U.S. Small Business Administration said.
Last year the agency decided to eliminate fees for the smaller loans in its 7(a) loan program, a savings of $2,500 on a $150,000 loans.
The loans provide financing for start-up and existing small businesses that might not be available without an SBA guarantee. Since the start of the 2014 fiscal year, the businesses have qualified for 41 of the loans.
The SBA also eliminated fees for veterans’ loans up to $350,000 under the SBA Express program through a new program called SBA Veterans Advantage.
The two zero-fee programs are in place through Sept. 30.
"We were waiting to see if small business owners and lenders would respond to the new fee structure and are delighted to see the program’s initial success," said Leon Milobar, district SBA director.