The Small Business Administration's loan-guarantee programs have set agency records in recent years, according to Acting Administrator Jeanne Hulit. However, smaller loans have been decreasing even as the amount of larger loans guaranteed is increasing.

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Some fees waived for small loans

The decrease in the number of small loans being guaranteed is worrying, according to SF Gate. They are traditionally taken out to finance startups, and are largely sought by women, minorities and veterans. Hulit cited when she announced a plan to waive and reduce a variety of fees for loans of less than $150,000.

For these small loans, the SBA is waiving a 2 percent loan-guarantee fee, and reducing the monthly guarantee fee paid by lenders as well. In effect, this will mean small-business owners who need to borrow a small amount of growth capital will not find it necessary to present $2,550 in fees for a loan of $150,000.

SBA loans have undergone recent reform in other areas as well, with the SBA working to reduce paperwork and simplify their application processes. It is expected there will be an increase in small loans with the combination of fee waivers and an easier application process.

$30 billion in loans backed FY2013

According to The Washington Post, the SBA backed approximately $30 billion in loans for the third consecutive year in fiscal year 2013. The total number of loans it backed increased year-over-year as well.

"Under President Obama, SBA lending has reached record levels and we continue to get more capital into the hands of small business owners than ever before," Acting SBA Administrator Jeanne Hulit said in a statement.

The Post pointed out an SBA loan can be the best option for many small-busines​s owners. If their applications for business financing are on the edge of being approved or denied, the knowledge that the SBA will guarantee a portion of the loan can make all the difference for a small-business owner. Lenders can expect reasonable repayment, and business owners can obtain financing that might otherwise have been out of their reach.

In President Obama's latest budget proposal, he suggested permanently reinstating the 504 refinancing option from the Small Business Jobs Act that expired at the end of fiscal year 2012. This would likely increase lending even more, enabling the SBA to make 2014 another record year.

News Source : The Small Business Administration's loan-guarantee programs have set agency records in recent years, according to Acting Administrator Jeanne Hulit. However, smaller loans have been decreasing even as the amount of larger loans guaranteed is increasing.

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