August 22, 2017

SBA Hot Topic Tuesday: Fees for 7(a) Loans Made to Veteran Owned Small Businesses Effective October 1, 2017

By Bob Coleman
Editor, SBA Hot Topic Tuesday

SBA Information Notice 5000-1955

Veteran-owned Small Businesses Upfront Guaranty Fees in FY2018

$125,000 or less: zero
SBA Express Loans: zero
SBA Veterans Advantage (non-SBA Express Loans)
$125,001 – $150,000: 1%
$150,001 – $350,000: 1.5%
(For loans with a maturity of 12 months or less, the fee will be 0.125% of the guaranteed portion.)
$350,001 to $700,000: 3%
$700,001 to $5,000,000: 3.5% (plus 3.75% of the guaranteed portion over $1,000,000.)
(For loans with a maturity of 12 months or less, the guaranty fee is 0.25% of the guaranteed portion.)
Annual Service Fee in FY2018: 0.55%

SBA Veteran Qualifications
51% or more owned and controlled by an individual or individuals in one or more of the following groups:

  • Veterans (other than dishonorably discharged);
  • Service-Disabled Veterans;
  • Active Duty Military service member participating in the military’s Transition Assistance Program (TAP);
  • Reservists and National Guard Members; or
  • Current spouse of any Veteran, Active Duty service member, or any Reservist or National Guard member; or widowed spouse of a service member who died while in service or of a service-connected disability.

Lenders must document in their loan file the borrower’s eligibility using the documentation identified in the attachment to this Notice and must present copies of that documentation with any guaranty purchase request.

Download SBA Information Notice 5000-1955