RATES as low as

10-Year Fixed 4.514%

20-Year Fixed 4.596%

EMAIL UPDATES

Loan Fees

SBA 504 Debenture Pricing

SBA 504 Loan fees are financed as part of the debenture. The fees are calculated as a percentage based on the SBA portion of the project (the net debenture amount). The fees are described as follows:

SBA 504 Loan Fees:FeePaid To:
Sample Debenture: $400,000
Funding Fee
.25%Central Servicing Agent (CSA)
$1,000
CDC Processing Fee
1.5%
TCM
$6,000
Legal Closing Costs
$1,950
TCM Closing and Legal Review
$1,950
Underwriter Fee*
0.40%
Varies
$1,644
Subtotal$10,594
Rounded to the highest thousand (refunded to Borrower)$406
TOTAL GROSS DEBENTURE$411,000

*The Underwriters fee is based on the gross debenture amount. The rate is 0.40% for 20 year debentures, and 0.375% for 10 year debentures.

Servicing Fees

Servicing fees are reflected in the effective interest rate and included in the monthly payment amount. These servicing fees are distributed to three entities: SBA (0.914%), TCM (0.625%) and the CSA (0.1%). At inception, these servicing fees are based on the total Loan amount (gross debenture); the fees are then reduced at each five-year interval, at which time they are based on the new outstanding loan balance.

Lender Participation Fee

A one-time fee is paid by the Participating Lender. This fee is equal to one-half percent (0.5%) of the principal amount of the senior mortgage and/or lien associated with the 504 Loan.

Prepayment Premium

The Borrower may repay the entire outstanding loan balance prior to the maturity date, but may not make partial prepayments. If the Borrower prepays during the first half of the term, there will be a prepayment premium. This premium is equivalent to one year's interest in the first year of the loan term, declining to zero at the midpoint of the loan term. A Schedule of the precise dollar amounts of the premium for each loan is provided after the sale of the debenture.
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