ECNETNews reports that the U.S. Small Business Administration (SBA) has unveiled lender fees for fiscal year 2025 associated with the 7(a) and 504 loan programs.
For the second consecutive year, the SBA will waive upfront fees on loans of $1,000,000 or less, benefiting both loan programs.
The initiative aims to enhance access to capital, particularly for underserved communities, with a focus on small dollar loans, according to the SBA.
No Fees for Small Dollar Loans
A significant aspect of the announcement is the continuation of zero or minimal fees for small dollar loans. Under the SBA’s 7(a) program, loans of $500,000 or less will incur no fees. This effort is part of a larger strategy to promote small dollar lending and facilitate easier access to necessary funds for small businesses to foster growth and success.
The 7(a) Working Capital Pilot (WCP) program will also benefit from substantial fee reductions. No upfront fees will apply to loans of $1,000,000 or less, while loans of $500,000 or less will not be subject to an annual service fee. These measures are designed to provide critical financial relief to small enterprises, allowing them to invest more in their operations and growth.
For comprehensive details regarding the FY25 fees, stakeholders can review the 7(a) Fee Notice, the 504 Fee Notice, and the Working Capital Pilot (WCP) Fee Notice. These documents offer crucial information and breakdowns of the fees, serving as important resources for both lenders and borrowers.
