SAN DIEGO--(BUSINESS WIRE)--Feb. 16, 2005--U.S. Bank has
introduced a new "fees paid" SBA loan for small business customers
utilizing the flagship 7(a) guaranteed loan program by the U.S. Small
Business Administration (SBA).
Through its SBA Division, U.S. Bank will pay the required SBA
Guaranty fee for owner or users purchasing business property with a
loan up to $2 million. Small business borrowers could save up to
$53,000 on a typical 75 percent SBA Guaranty, according to David H.
Bartram, president, SBA Division.
The mandated SBA Guaranty fees passed on to borrowers increased
significantly beginning in 2005, when the program was re-authorized by
the U.S. Congress, Bartram explained.
"The feedback we've gotten recently from our new small business
customers is that the increased SBA Guaranty fee is very hard to
accept. So, U.S. Bank is now going to pay the fee as a means for us to
remove this financial burden, help our customers retain more of their
working capital, and grow their business at the same time. Our goal is
to provide our small business clients with as many positive options as
possible," Bartram explained.
"To the best of our knowledge, a 'fees paid' loan initiative has
never been attempted before and we have already received a great
response from both our U.S. Bank partners as well as from our external
referral sources," Bartram said.
Bartram added that the "fees paid" program does not have an
expiration date and includes the key positive facets of other SBA 7(a)
loans: up to 90 percent financing, up to 25-year term and funding in
30 to 45 days with a completed loan package.
"This is one more way U.S. Bank is building the best bank in
America," Bartram said.
U.S. Bank SBA Division, based in San Diego, operates 25 specially
designated SBA Business Centers serving 25 states. U.S. Bank is a
subsidiary of U.S. Bancorp (NYSE:USB), which, with assets of $195
billion, is the 6th largest financial services holding company in the
United States. The company operates 2,370 banking offices and 4,620
ATMs, and provides a comprehensive line of banking, brokerage,
insurance, investment, mortgage, trust and payment services products
to consumers, businesses and institutions. U.S. Bancorp is home of the
Five Star Service Guarantee which assures customers of certain key
banking benefits and services or customers will be paid for their
inconvenience. Visit U.S. Bancorp on the web at usbank.com.
U.S. Bank Media Relations
U.S. Bank SBA Division
SOURCE: U.S. Bank