For SBA 504 loans approved on or after October 1, 2016, the U.S. Small Business Administration has reduced overall loan fees by cutting the annual service fee from .914% to .697%, a reduction of 21.7 basis points.
This will result in a reduction of SBA 504 effective interest rates by almost a quarter percent for loans authorized after October 1, 2016.
The upfront guarantee fee portion of the debenture fees remains at zero for fiscal year 2017. Last year, that fee was reduced from 0.5% to 0% and that change remains in effect this year, making SBA 504 rates even lower.
Click here for current SBA 504 rates.