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Sept. 26, 2013 – Credit unions can look forward to a reduction in some annual service fees and guaranty fees assessed by the Small Business Administration in its 7(a) program beginning Oct. 1.

In an announcement Wednesday, SBA said the yearly fee will be 0.52 percent of the guaranteed portion of the outstanding loan balance for loans exceeding $150,000 approved in fiscal 2014, which begins Oct. 1. For loans of $150,000 or less approved in fiscal 2014, there will be no yearly fee and no upfront guaranty fee. (Currently, the guaranty fee for loans up to $150,000 is 2 percent of the guaranteed portion.)

"NAFCU welcomes the 2014 fee reductions, which will make 7(a) program participation less expensive for credit unions looking for more ways to facilitate loans for their small-business members," said NAFCU Senior Regulatory Affairs Counsel Tessema Tefferi said. SBA-guaranteed portions of credit unions' member business loans are not counted against the institutions' statutory MBL cap.

SBA said there will be no changes in fees for 504 program loans.