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What the New Small Business Administration Fee Waiver Means for Businesses

As the calendar flips to October, small businesses should know how the U.S. Small Business Administration’s (SBA) upcoming fee waiver will impact their finances. From Oct. 1, 2021, through Sept. 30, 2022, the SBA will waive the upfront guaranty fee on 7a, Express, EWCP, etc., loans for amounts up to $350,000 and the ongoing servicing fee.

This fee reduction will allow small businesses more accessible access to financial support options and more revenue to sustain internal exports, capital levels and credit. To ensure its clients are aware of how the new fee structure could impact their business, First American Bank is launching a campaign to educate business owners on the merits of the change.

“First American Bank will spread awareness of the new fee waiver through links across our website and within our monthly business newsletters,” says Alan Lane-Murcia, SBA Program Manager for First American Bank. “Our loan officers are also well aware of the waiver, so they will be sure to tell all customers seeking a loan below $350,000 that it is an option.”

Before the upcoming change, SBA loans covered only up to $150,000, which kept smaller businesses struggling with capital shortages from finding the support they needed after fees. With the new $350,000 threshold and waiver beginning Oct. 1, these businesses will gain more access to obtain financial aid by enticing more banks to offer smaller-dollar loans.  

Additional SBA loan details and changes include: 

  • For loans between $350,001-$1,000,000, the SBA upfront fee and ongoing serving fee will be slightly reduced. For loans over $1,000,000, standard SBA fees (calculated by the SBA) will apply. 
  • For all loans approved by the SBA starting Oct. 1, standard guaranty percentages will apply. 
  • 504 loans will revert to their standard fees on Oct. 1, including loans currently not approved. 
  • SBA loans (except 504) approved by the SBA by Sept. 30 will have a 90% guaranty (75% for Express loans) and a $0 fee. 

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Drew Limsky

Drew Limsky

Editor-in-Chief

BIOGRAPHY

Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.