Monday, November 11, 2013
SBA Announces New Measures to Help Get Small Business Loans Into the Hands of Veterans
The U.S Small Business
Administration (SBA) today announced new measures to help get small
business loans into the hands of veterans by setting the borrower
upfront fee to zero for all veteran loans authorized under the SBA
Express program up to $350,000.
This initiative will start on January 1 and continue through the end of
the fiscal year.
“Our nation’s veterans are
highly-skilled and highly-trained leaders in their communities,” said
Acting SBA Administrator Jeanne Hulit. “This initiative will set fees
to zero for SBA Express loans to veterans up
to $350,000, and is part of SBA’s broader efforts to make sure that
veterans have the tools they need to start and grow a business. As we
honor our veterans and thank them for their service and sacrifice, let’s
continue to identify ways to support them when
they come home.”
Of all SBA loans that go to veterans, 73 percent
are $350,000 and below. 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. Since the program’s
inception, it has also been one of the most popular delivery methods for
getting capital into the hands of veteran borrowers.
“This is just another of many forms of assistance
we have for our veterans,” reminded SBA Mid-Atlantic Regional
Administrator Natalia Olson Urtecho. “We want to help them capitalize
on their entrepreneurial adeptness in any way we can.
They’ve served for us, now it’s our honor to serve them.”
Building on SBA’s recent announcement that for the
current fiscal year, fees on loans for $150,000 and under are set to
zero, this policy announcement means that veteran borrowers will no
longer have to pay an upfront fee for any loan up
to $350,000 under the SBA Express program. This new initiative goes
into effect January 1 and extends for the duration of the fiscal year.
This will make the loans cheaper for the borrower, another way SBA is
looking to serve small business owners as they
look for ways to access capital.
Today’s announcement comes
during SBA’s National Veterans Small Business Week, an initiative on the
part of the U.S. Small Business Administration to reach out to veteran
entrepreneurs and business owners. During
Veterans Small Business Week, SBA staff all across the country have
been working with partner organizations on educational efforts,
mentoring, and trainings to make sure veterans have the tools they need
to start or grow their business.
SBA provides veterans access to business counseling
and training, capital and business development opportunities through
government contracts. In FY 2013, SBA supported $1.86 billion in loans
for 3,094 veteran-owned small businesses.
And since 2009, the dollar amount of SBA lending support to
veteran-owned firms has nearly doubled.
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