The US Small Business Administration has announced lender fees for fiscal year 2025 for 7(a) and 504 loan programs.
For the second year in a row, the SBA will waive the prepayment fee for loans of $1,000,000 or less for both loan programs.
Director Isabel Casillas Guzman emphasized the commitment to increase access to finance for the underserved through small dollar loans.
Zero Fees for Small Dollar Loans
Another highlight of the announcement is the continuation of zero or low interest rates on small dollar loans. In the SBA 7(a) priority program, there will be no fees for loans of $500,000 or less. The move is part of the administration’s broader efforts to promote small-dollar lending and make it easier for small businesses to get the capital they need to grow and succeed.
The 7(a) Working Capital Pilot (WCP) program will also see significant capital reductions. No upfront fees will be charged for loans of $1,000,000 or less, and there will be no annual service fee for loans of $500,000 or less. These measures aim to provide greater financial support to small businesses, enabling them to allocate more resources towards their operations and growth plans.
For more information on FY25 payments, interested parties may refer to the 7(a) Payment Notice, 504 Fee Notice, and Performance Competition Payment (WCP) Notice. These documents provide details of fees and are valuable resources for lenders and borrowers alike.
