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Reduced 504 Loan Fees in FY2022
The SBA announced the following fees effective for 504 loans approved October 1, 2021 through September 30, 2022:For all 504 loans (other than loans approved under the 504 Debt Refinance Without Expansion Program):
- The upfront guaranty fee will be 0.50% (50 basis points)
- The annual service fee will be 0.2475% (24.75 basis points) of the outstanding balance of the loan
- a decrease from 0.4517% (45.17 basis points) in FY 2021
For 504 Loans approved under the 504 Debt Refinance Without Expansion Program:
- The upfront guaranty fee will be 0.50% (50 basis points)
- The annual service fee will be 0.2590% (25.90 basis points) of the outstanding balance of the loan
- a decrease from 0.4865% (48.65 basis points) in FY 2021
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The combination of a low equity requirement, terms up to 25 years, and fixed rates at historic lows, makes the 504 program better than ever. In addition to financing the purchase or expansion of commercial real estate, 504 loans may also be used to refinance conventional real estate and equipment loans. For more information, please contact a TCM loan officer.
Note: 10-year 504 loan fundings occur on an every other month basis. The above rate reflects the 10-year 504 rate for the September, 2021 funding. |
