Each year SBA reviews certain fees payable to SBA by 504 borrowers to determine if any of those fees need to be adjusted to cover the estimated subsidy costs of the 504 loan program. SBA has announced that the following fees are effective for loans approved October 1, 2021 through September 30, 2022:
- The Ongoing SBA Guarantee Fee for regular 504 Loans approved in FY2022 is decreasing to 0.2475% (24.75 basis points) from the FY2021 Ongoing SBA Guarantee Fee which was 0.4517% (45.17 basis points) of the outstanding amount of the 504 loan.
- The Ongoing SBA Guarantee Fee for the Debt Refinance without Expansion 504 Loans approved in FY2022 is decreasing to 0.2590% (25.90 basis points) from the FY 2021 Ongoing SBA Guarantee Fee of 0.4865% (48.65 basis points) of the outstanding amount of the 504 loan.
This Ongoing SBA Guarantee Fee is a part of the overall effective interest rate of the SBA 504 Loan Program for it’s borrowers.
Help your borrowers take advantage of the great rate environment the SBA 504 Loan Program can offer by calling your MBFC Loan Officer today!