SBA 504 Loan: New Fees for FY 2019
The Small Business Administration has updated the fees for the 504 Loan Program for Fiscal Year 2019. Effective today, Oct 1, 2018 the fees have changed to the following:
For SBA 504 loans approved during FY 2019:
Upfront guaranty fee: changed from 0% to .5%. The new quote for total upfront fees will be 2.65% plus closing costs of $2,500, a slight increase from 2.15%.
Annual service fee: reduced to .368% from .642%. This lowers the overall effective interest rate.
To summarize, the processing fee has increased however the servicing fee has been reduced.
This pricing change is actually better for all borrowers who hold their loan for at least three years.
If you have any questions, please don’t hesitate to reach out to your TMC 504 Loan Expert.