Loan Fees Waived For Veterans Who Use SBA Express In 2014

Attention Veteran Owned Business Members (information provided by the VA and SBA):
SBAVeterans will get a break on Small Business Administration (SBA) loans beginning January 1, 2014.

Exempting Veterans from paying fees on these loans “is part of SBA’s broader efforts to make sure that Veterans have the tools they need to start and grow a business,” said Acting Administrator Jeanne Hulit.

The SBA announced it will charge no upfront borrower fees on loans of up to $350,000 made to Veterans through its SBA Express program.  This program is a popular source of smaller SBA 7(a) loans because of its streamlined paperwork and quick turnaround times.

In fiscal 2013, the agency backed $1.9 billion in loans to 3,094 Veteran-Owned businesses.

Veteran-Owned Small Businesses won more than $12.2 billion in federal contracting business in fiscal 2012.  And for the first time ever, the federal government exceeded the 3 percent goal to contract with Service Disabled Veteran-Owned Small Businesses.

But Veterans aren’t the only ones who received a break from the SBA this year.  The agency also is charging zero fees on all loans of less than $150,000.  Small businesses will save more than $2,500 in fees.

SBA Express

SBAExpress features an accelerated turnaround time for SBA review; a response to an application will be given within 36 hours.

About the Program
Maximum Loan Amount: $350,000 (See SBA’s October 8, 2010 press release for more information about the temporary increase to $1,000,000)
Maximum SBA Guaranty %: 50%
Interest Rate: Lenders and borrowers can negotiate the interest rate. Rates can be fixed or variable and are tied to the prime rate (as published in The Wall Street Journal), LIBOR, or the optional peg rate (published quarterly in the Federal Register) and may be fixed or variable, but they may not exceed SBA maximums: lenders may charge up to 6.5 % over the base rate for loans of $50,000 or less, and up to 4.5 % over for loans over $50,000.
Eligibility Decision: By SBA; qualified lenders may be granted authorization to make eligibility determinations.
Revolving Lines of Credit: Up to seven years with maturity extensions permitted at the outset.
SBA Turnaround Time: Within 36 hours
Forms: Lender primarily uses own forms and procedures, plus SBA Form 1919, Borrower Information.
Collateral: Lenders are not required to take collateral for loans up to $25,000; may use their existing collateral policy for loans over $25,000 up to $350,000.
Credit Decision: By lender.
Purchase: May request expedited SBA purchase on small loans or in situations where liquidation may be delayed.

Loans made under this program generally follow SBA’s standards for the 7(a) Loan Program.


A lender may be eligible to participate in SBAExpress if:

  • It is currently an SBA partner lender and meets certain portfolio performance standards.
  • There are no minimum SBA loan volume requirements to begin making SBAExpress loans.
  • It is currently a non-SBA lender that makes a reasonable number of commercial loans of $50,000 or less.

For More Information

For more information and a complete description of the application process, consult SBA’s SOP 50 10 5(A).

Related Lender Article:
SBA Express Criteria

This Veteran Owned Business Announcement was brought to you by Veteran Owned Business. Veteran Owned Business is in no way affiliated with the above organization(s). We do not in any way endorse the above business/organization or guarantee any offers made above. and the Veteran Owned Business Directory are simply providing information we feel is of interest to veterans, active duty military, reservists, service disabled veterans, veteran owned businesses, service disabled veteran owned businesses, families of veterans, families of our armed forces and any other person or persons directly or indirectly involved with the United States military.

If your business is (or you know of another business) owned by a veteran (VOB), active duty military, reservist, service disabled  veteran (SDVOSB) or military spouse of the United States, Army, Air Force, Marines, Navy, Coast Guard or National Guard, please be sure to visit the sign up page to get your free listing.

The objective of our FREE Veteran Owned Business Directory is to continue to offer a growing list of products and services that are unique in the fact that they are all owned by, sold by and/or serviced by past and present military members.

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