The Veterans Entrepreneurship Act, passed in July 2015, waives the upfront guarantee fee which is normally required for a Small Business Administration 7(a) express loan, for veterans or their spouses. It applies to loans made on or after Oct. 1, 2015.
Veterans Entrepreneurship Act of 2015
(Sec. 2) Amends the Small Business Act to prohibit the Small Business Administration (SBA) from collecting a guarantee fee in connection with a loan made under the SBA Express Program (https://www.sba.gov/content/sba-express) to a veteran or the spouse of a veteran on or after October 1, 2015, except during any upcoming fiscal year for which the President’s budget, submitted to Congress, includes a cost for the Program that is above zero.
(Sec. 3) Requires the SBA to assess for Congress the level of outreach to and consultation with female veterans regarding access to capital by women’s business centers and Veterans Business Outreach Centers.
(Sec. 4) Amends the Consolidated and Further Continuing Appropriations Act, 2015 to increase the limit from $18.75 billion to $23.5 billion for FY2015 commitments for general business loans for a combination of amortizing term loans and the aggregated maximum line of credit provided by revolving loans.
Amends the Small Business Act to prohibit the SBA, starting October 1, 2015, from guaranteeing a loan if:
the lender determines that the borrower is unable to obtain credit elsewhere solely because the lender’s liquidity depends upon the guaranteed portion of the loan being sold on the secondary market, or
- the sole purpose for requesting the guarantee is to allow the lender to exceed its legal lending limit.
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