![]() For loans where the loan note guarantee is issued between October 1 and December 31, the first annual renewal fee payment will be due January 31 of the second year following the date the loan note guarantee was issued. Any delinquent annual renewal fees will bear interest at the note rate and will be deducted from any loss payment due the lender. Holders’ rights will continue in effect as specified in the loan note guarantee and assignment guarantee agreement. The SBA has long served as a lender of last resort for small businesses that were unable to access loans through private lenders. Payments not received by April 1 are considered delinquent and, at the Agency’s discretion, may result in cancellation of the guarantee to the lender. Annual renewal fees are paid by the lender and due on January 31. The rate, in effect at the time the loan is made, will remain in effect for the life of the loan. Although SBA began purchasing these PPP loans in July 2021, SBA did not conduct a cost benefit analysis until April 2022, and the analysis did not have specific assessments of costs to collect or potential recovery amounts for PPP loans. The renewal fee rate is set annually by Rural Development in a notice published in the Federal Register. ![]() (2) The annual renewal fee is currently one-half of one percent (0.5%) of the outstanding principal loan balance as of December 31. 7 (a) loans: A group of SBA loans that guarantee portions of the total amount, cap interest rates, and limit fees. Commercial nurseries, forestry, and aquaculture operations are eligible without these restrictions. Here is a quick checklist of the types of loans offered by the SBA: Microloans: The SBA’s smallest loan program, providing 50,000 or less to help businesses start up and expand. (1) Agricultural production is eligible only if the project is vertically integrated, ineligible for USDA Farm Service Agency (FSA) farm loan programs assistance, and it is part of an integrated business also involved in the processing of agricultural products. RBCS How-To Apply Video Series for Applicants.
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