Each year, the Small Business Administration (SBA) reviews certain fees payable to the Agency 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.
Program fees paid on 504 loans for loans approved on or after Oct. 1, 2021, through Sept. 30, 2022 will be as follows:
(a) The Fees include the one-time upfront SBA Guarantee Fee that is priced as an Administrative Cost in the Debenture at 0.005 of Net Debenture Proceeds (50 basis points). This applies to both regular 504 Loans and Debt Refinance without Expansion 504 Loan approved in FY2022.
(b) The Ongoing SBA Guarantee Fee for regular 504 Loans approved in FY2022 is decreased to 0.2475% (24.75 basis points) from the FY2021 Ongoing SBA Guarantee Fee which has been 0.4517% (45.17 basis points) of the outstanding amount of the 504 Loan.
(c) The Ongoing SBA Guarantee Fee for Debt Refinance without Expansion 504 Loans approved in FY2022 is decreased to 0.2590% (25.90 basis points) of the outstanding amount of the 504 Loan (0.2475% plus 0.0115%) from the FY2021 Ongoing SBA Guarantee Fee for Debt Refinance without Expansion of 0.4865% of the outstanding amount of the 504 Loan (0.4517% plus 0.0348%).
(d) The Economic Aid Act’s waiver of the Third Party Lender Participation Fee ends September 30, 2021.