Notice: SBA Rate/Fee Changes


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Each year the 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
Each year the 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.
 
The SBA recently announced the FY2019 annual service fee (also known as the "on-going guaranty fee") and upfront guaranty fee for 504 loans.
 
The following fees are effective for 504 loans approved October 1, 2018 through September 30, 2019:
 
For 504 loans (other than 504 Debt Refinance loans) approved in FY2019:
 
1) The upfront guaranty fee will be 0.50% (50 basis points). It was zero in FY2018. 
 
2) The annual service fee will be 0.368% (36.8 basis points) of the outstanding balance of the loan. It was 0.642% in FY2018. 
 
For 504 Debt Refinance loans approved in FY2019:
 
1) The upfront guaranty fee will be 0.50% (50 basis points).
 
2) The annual service fee will be 0.368% plus 0.027%, for a total of 0.395% (36.8 basis points plus 2.7 basis points) of the outstanding balance of the loan.
 
 


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