SBA fee waiver queue still alive, but new funds unlikely

Funds supporting the 504 and 7(a) loan program Recovery Act fee waivers began to run out in late May and SBA reactivated its Recovery Loan Queue. Throughout the month of June 504 loans have continued to be approved with the fees paid. 

However, according to our industry sources in DC, the latest House request for additional waiver funds has died in the Senate, despite the support of lenders, the SBA, the White House and the House of Representatives. The New York Times reported today that the Senate may try again with a new bill, but "Bipartisanship will likely be hard to come by regardless of what the bill includes."

Loans in the queue were funded yesterday and Evergreen Loan Officers are working with applicants currently in the queue to determine how long they can wait based on their own situation.

Barring some unexpected Congressional action, new applicants should expect the program fees to return to 2.15 percent of the SBA loan and financed into the Gross Debenture. Lenders should plan to pay a one-time fee to the SBA of .5 percent of their first mortgage, which is usually passed on to the borrower.

The SBA 504 loan program benefits will continue to boost business expansion and support economic development in communities nationwide.