Businesses will continue to have most of their up-front 504 loan program fees paid for them by the US Federal Government for at least another month. On March 2nd the US Senate passed HR 4691, the Temporary Extension Act of 2010, which will provide $60 million to extend the elimination of certain 504 program fees. The President signed the bill into law.
The 504 fee waiver includes 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 portion of the financing. The temporary extension, which expires on March 28, will continue the waiver helping businesses keep more cash on hand for working capital.
Congress continues to work on more legislation that may extend the fee waivers through September 30, 2010, increase the limit on Evergreen/SBA loan to $5 million and allow the temporary refinancing of conventional owner-occupied commercial real estate loans with the 504 program.
Contact your local Evergreen loan officer [1]for more information, 800.878.6613.
Links:
[1] http://evergreen.createsend.com/t/r/l/ovxd/ttpnydd/r