SBA 504 Loan Program

PREPAYMENT

The first mortgage can generally be prepaid without penalty. The SBA loan can be prepaid, but must be prepaid in full. During the first half of the term of the loan there is a prepayment penalty, which begins at one year's interest and straight-line declines to zero. There is no prepayment penalty during the second half of the term. A prepayment schedule will be provided to the borrower after closing.