Bismarck, ND -
Small businesses are getting a big boost in financing.
The Small Business Administration is eliminating fees.
The SBA started a new program to eliminate fees for loans of $150,000 and less.
That's an average savings of about $2,000 according to Matt Varilek, an SBA Regional Administrator.
Varilek says since the recession banks have been slow to lend to small business on a small scale, but this new program is attractive to not just business owners but bankers.
"the SBA can provide a guarantee on the loan so its sort of an insurance policy to give the lender extra comfort that they will get repaid and consequently they are able to make the loans where they might not be able to do it on their own but that extra bit of comfort allows them to get over the edge and make the loans", says Matt Varilek.
Varilek says the SBA helped to facilitate 96 million dollars in additional lending to small businesses last year in North Dakota.
He says the new no fee program, has already been effective in the first couple of months especially for startup companies and rural areas.