SBA 504 Loan Program

There are three fees in the 504 program:

1. Processing fees. The processing fees compensate each service provider in the 504 process, which includes the CDC, SBA, underwriters and fiscal agent. Processing fees are one-time only fees, and are equal to approximately 3% of the 504 loan. These fees are financed in the SBA loan amount.

2. Legal fees. The legal fees compensate our bond attorney who reviews the closing package and presents the package to SBA's attorney. The legal fees for this service are equal to approximately $2500. These fees are also financed in the SBA loan amount.

3. Guaranty/Servicing fee. The annual guaranty/servicing fee is approximately 1.114% of the outstanding balance of the loan. These fees are included in the interest rate that is quoted to you by the CDC and will be automatically deducted by the Central Servicing Agent with your monthly payment.