Not too many weeks ago the SBA announced it would waive borrower fees for veterans who take out a small business loan via the Express Loan Program. The program lends in amounts up to $350,000 and usually charges fees up to three percent. They’ve also eliminated fees on SBA 7(a) loans for $150,000 or less, which I think is a great move to help Main Street business owners generally—this move will benefit veterans specifically.
“Supporting veteran-owned small businesses is among the agency’s core responsibilities, and in the past year, it helped deliver $1.8 billion in loans to more than 3,000 veteran entrepreneurs,” writes J.D. Harrison for the Washington Post.” Most of those loans are made by banks, credit unions and other private lenders, but with a partial guarantee from the government.”
The lion’s share of small business loans to veterans last year were under the $350,000 ceiling, so this should be a good thing for veteran-owned small business owners.
Like any small business, veteran-owned or otherwise, success is not guaranteed—even with an SBA loan. But any time a small business owner can access capital at a lower cost, it’s a good thing. And, I think supporting those who have sacrificed and served their country in the military is a good thing too.