According to Bloomberg Businessweek, the Small Business Administration has revealed that starting January 1st 2014; the SBA will eliminate loan fees for veteran-owned businesses. The fees will be waived for loans up to $350,000 from January 1st to September 30 of 2014.
This is great news for business owners, especially start-ups as the waived fees will save veterans around $4,000. The SBA is hoping that this program will increase the number of veteran-owned businesses which in return helps other veterans obtain jobs.
According to the SBA office of advocacy, veteran-owned businesses have decreased to 1.7 million in 2012 from 1.9 million in 2008. With the decrease, the pilot program of the Patriot Express loan has been criticized as not helping the cause; even though the SBA backed approximately $700 million under the program this year. Because of the assumed failure of the program, it is expected to expire at the end of the year.
In any case, all veteran-business owners or aspiring business owners should get their paperwork in order and apply for the new fee waive. Any little bit can help the cause!
Read the full article by Patrick Clark here at Bloomberg Businessweek http://www.businessweek.com/articles/2013-11-08/a-new-attempt-to-goose-lending-for-veteran-owned-businesses