SBA Issues Clarification on Fee Reductions for Loans Under $150,000
March 20, 2014
The purpose of this Notice is to provide additional clarification on the FY2014 reduction in fees for all 7(a) loans of $150,000 or less that was announced on September 24, 2013, in SBA Information Notice 5000-1288. (SBA previously provided clarification in Information Notice 5000-1294 on December 12, 2013.) Based on loan activity in the first quarter of FY2014, SBA conducted further review of the policies applied to the fee reductions for such loans. Accordingly, the following additional clarification is being issued.
Any 7(a) loan of $150,000 or less, regardless of term, will not be charged an upfront guaranty fee or be subject to the yearly fee (also known as the ongoing servicing fee) if:
• It was guaranteed by SBA during FY2014; and
• It is either:
o The only 7(a) loan approved for the business applicant (or its affiliates) within a 90 day period; or
o Part of a companion group of 7(a) loans approved for the same business applicant (or its affiliates) within a 90 day period, and the combined amount of all loans does not exceed $150,000.