SBA Rates 5.861% 10yr 6.065% 20yr 5.856% 25yr | SBA Refi Rates 5.875% 10yr 6.105% 20yr 5.858% 25yr | Prime Rate 6.75%
SBA504 LOAN TERMS & FEES
Loan Terms
Three terms are available for financing an SBA 504 loan project. Depending on the nature of the project, the term options are either 10 years, 20 years, or 25 years with a fixed interest rate. A typical project would be structured as a commercial lender providing 50% of the project total, the CDC providing 40%, and the business contributing a minimum of 10%. The business equity injection requirement may be higher if it is a newly established business or if the project is considered single purpose.
Examples of a single purpose facility would include a hotel, a bowling alley, or a car wash.
Sample SBA504 Loan Structure
Fees
An application fee is due at time of application equaling 1% of the SBA loan amount or $2,500 – whichever is less. This fee is fully refunded after the SBA loan has been disbursed or if your loan request is not approved by either the CDC Board of Directors or the SBA.
Please refer to the SBA Application Fee Agreement form for details pertaining to the application fee and the SBA 504 Loan Fee Sheet regarding the ongoing fees.