New SBA 504 borrowers will continue to have the majority of their up-front fees paid by the Federal Government, at least through May. Congress and the President have signed into law HR 4851, the Continuing Extension Act of 2010. It provides $80 million to extend the elimination of certain 504 & 7(a) loan program fees.
The 504 fee waivers, first made available under the American Recovery and Reinvestment Act, include both the lender fee of 0.5% and the borrower processing fee of 1.5%. It keeps borrower program fees at 0.65% of the Evergreen/SBA financing portion, plus legal fees. The extension, which will expire when the money runs out, will help businesses expand, create jobs and keep more cash on hand for working capital.
Contact your local Evergreen loan officer for more information, 800.878.6613.