[Hidden-tech] Small Business Administration offers fee-waived loans under $150K

[Rich Roth]

*From Recorder 3/13/2014

Small Business Administration offers fee-waived loans under $150K*

*

By RICHIE DAVIS Recorder Staff*

To prime the pump of small business and improve the economy, the Small 
Business Administration has eliminated fees on business loans of under 
$150,000.

The no-fee loans program, which began in October and runs through the 
end of the federal budget year Sept. 30, gives businesses a chance to 
borrow from banks at savings of up to $2,550 --- enough to pay for an 
additional piece of equipment or provide some additional working 
capital, says Massachusetts SBA Director Robert H. Nelson.

"Any time you can save small businesssome money, that's good news," he 
saidrecently.For veterans --- including reservists, National Guard and 
the spouses --- the limit on no-fee loans is $350,000, he said. "We want 
to make sure small businesses know these incentives are in place."

SBA is also providing an incentive for banks to promote the program, by 
eliminating this year the fee they are normally charged.

"We hope to continue this (promotion) in the future, but it's good news 
right now," said SBA New England Regional Director Seth Goodall. He said 
that Massachusetts is among the top states in the country when it comes 
to SBA loans issued through local banks.

"It's about getting capital into the hands of small businessesto 
stimulate the economy" added Nelson.

Between last Oct. 1, when the program began, and Jan. 1, SBA has 
guaranteed nearly $80 million in so-called 7(a) loans in Massachusetts, 
including nearly $120,000 through Greenfield Savings Bank and $82,000 
through Greenfield Co-Operative Bank.

Greenfield Savings loan officer said A.J. Bresciano said his bank has 
been makingSBA-guaranteedsmallbusiness loans for years.

"It certainly helps out when collateral becomes an issue for a loan," 
Bresciano said. "Those guarantees make it very helpful to a bank to 
maybe say 'Yes,' when otherwise, we'd have to say, 'No.'" With no 
up-front fee charged to the borrower, it makes it more attractive to use 
the program for businesses that lack enough collateral, said Bresciano, 
as long as cash flow is good and the businesses meet all other borrowing 
requirements.

"There's a number of businessesthat we've utilized theprogram for," he said.

In addition to loans, SBA provides small businesses technical assistance 
and counseling through the Service Corps of Retired Executives, at the 
Franklin County Chamber Commerce office.

On the web:www.sba.gov/loanprograms <http://www.sba.gov/loanprograms>.

You can reach Richie Davis at:rdavis at recorder.com 
<mailto:rdavis at recorder.com>or 413-772-0261, ext. 269


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