Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Some SBA 7(a) Fees To Drop On Oct. 1
WASHINGTON (9/27/13)--The U.S. Small Business Administration (SBA) this week said some 7(a) loan program fees will be reduced, beginning on Oct. 1.

According to the agency, a yearly fee of 0.52% of the guaranteed portion of the outstanding balance of the loan will be assessed for 7(a) loans of $150,000 or more that are approved in the 2014 fiscal year. The SBA currently charges a service fee of 0.55% of the outstanding balance of the guaranteed portion of the loan.

Yearly fees and guaranty fees will not be charged on 7(a) loans of $150,000 or less that are approved in that year, the SBA added.

Credit unions may participate in 7(a) loans, and the SBA-guaranteed portion of a 7(a) loan is not counted against a credit union's business lending (MBL) cap. There were 347 credit unions with over 8,100 SBA loans outstanding, totaling $921 million in funds, at the end of 2012.

The Credit Union National Association earlier this year urged the SBA to facilitate credit union loans to small businesses by supporting legislation that would increase the 12.25%-of-assets member business lending (MBL) cap. Separate House (H.R. 688) and Senate (S. 968) MBL bills were introduced earlier this year. Both bills would increase the MBL cap from 12.25% of assets to 27.5%. CUNA has estimated that lifting the MBL cap would create 140,000 jobs and inject $13 billion in new funds into the economy, at no cost to taxpayers.

H.R. 688 has 115 House co-sponsors, and S. 968 is co-sponsored by 17 senators.


RSS





print
News Now LiveWire
Matz: Revised @TheNCUA #RBC rule for #creditunions 2 B unveiled 1/15/15, 90-day comment period to follow #newsnow http://t.co/qABhvghSTU
1 Day ago
Just announced: @TheNCUA board will consider a revised risk-based capital rule at its Jan 15 mtg. See #NewsNow Monday for more info.
1 Day ago
Nearing one-yr anniversary of data breach, @Target asks for class action suits to be dismissed via @BloombergNews http://t.co/kra6kupd35
1 Day ago
.@PeoplesTrustFCU has been recognized with the Juntos Avanzamos designation by @Cornerstone_CUL for its service to the Hispanic community
1 Day ago
#NewsNow: Rep. Hensarling names #HFSC subcommittee chairs. http://t.co/dXAMZdpn1p
1 Day ago