EFFECTIVE IMMEDIATELY: SBA REDUCES FEES ON ALL 504 LOANS APPROVED IN FY 2016
The SBA announced that the fees on the SBA portion of 504 loans will be reduced for all 504 loans approved in FY 2016, which began October 1, 1015.
The one-time guarantee fee will be reduced to zero, reducing the overall guaranty fee from 2.65% to 2.15%. Additionally, the ongoing annual service fee will be reduced from 0.9375% to 0.914% of the outstanding balance of the loan.
This is great news for borrowers. Interest rates on SBA 504 loans are still at historic lows – currently 4.90% – and the reduction in fees will further reduce the borrower’s monthly loan payments.
Questions about how this fee reduction will impact your project? Contact us for a customized breakdown of costs. We’ll show you exactly how much it will save you.