SBA 7(a) Fee Clarification

Wednesday, March 19, 2014 / Published in Featured News, SBA Notices
SBA 7(a) Fee Clarification

The SBA Information Notice 5000-1309 provides clarification on the SBA Fiscal Year 2014 reduction in fees for all 7(a) loans of $150,000 or less.

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. 
 
Different fee policies apply when any companion group of 7(a) loans, regardless of term, are approved within 90 days of each other and their combined gross loan amount exceeds $150,000. Because the upfront guaranty fee is based on the amount of the SBA share, that fee will be calculated based on the combined SBA shares of all SBA business loans to one borrower, including affiliates, approved within 90 days of each other. (Note: The upfront guaranty fee on loans with a maturity of 12 months or less is calculated separately from the upfront guaranty fee on loans with a maturity of over 12 months.) See SOP 50 10 5 (F), Subpart B, Chapter 3. The applicable upfront guaranty fee and yearly fee will be applied to the loan that takes the combined total over $150,000. 
  
Access the full information notice here.
 
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