SBA to waive fees on smaller loans

The U.S. Small Business Administration has been setting records for the past two fiscal years, doling out more than $30 billion in 2011 and 2012. While that may sound like a good record to set, as far as helping the economy to flourish, Bloomberg reports it isn't.

That’s because it’s the dollar amount, not the number, of loans that has increased. Larger loans have skyrocketed, according to Bloomberg, while loans of $150,000 or less – the kind that typically finance startups - are way down.

To entice would-be entrepreneurs to pursue their dreams of owning their own businesses, the SBA is waiving some fees and payments for smaller loans, including closing fees that can amount to more than $2,500. The waivers will allow borrowers to direct savings into their startups, according to the SBA, which has not set an end date for the waivers.

Read more from Bloomberg.