What are the SBA 504 Loan Program fees?

SBA 504 loans offer a low-down-payment, long-term, low-interest-rate solution for the purchase of commercial real estate and equipment, allowing business owners to keep cash available for other business needs. All 504 fees are set when SBA authorizes the loan. Businesses with Authorizations will not have their fees change.

BORROWER LOAN ORIGINATION FEES

The total Origination Fees are 2.15% of the net 504 loan amount. The "net 504 loan amount" is the portion of total project costs financed by Evergreen before our fees are added, usually 40% of the total project costs.

• SBA Guarantee Fee of 0.0% paid to an SBA account. (Yes, it is currently zero.)
• Funding Fee of 0.25% paid to Development Company Funding Corporation and charged to cover the costs incurred by the trustee, fiscal agent and transfer agent.
• CDC Processing Fee of 1.5% payable to Evergreen. This fee is currently waived by the Recovery Act and is expected to return in January, 2010.
• Underwriter's Fee of .4% paid to the program underwriter on Wall Street.

BORROWER SERVICING FEES

These fees are included in the interest rate we quote and thus part of the monthly payment the borrower makes on the loan.

• Servicing Fee to Evergreen of 0.625% per year of the loan amount.
• Central Servicing Agent Fee of 0.1% per year of the loan amount. The current Central Servicing Agent is a company called Colson Services.
• SBA Guarantee Fee, currently 0.0% per year of the loan amount. It will increase to 0.389% in the new fiscal year beginning October 1, 2009. This increase will only affect loans authorized after October 1.

LENDER FEE

The lender or bank pays a one-time Participation Fee of 0.5% of the first mortgage amount. Evergreen collects it and pays it to the SBA on behalf of the lender. This fee is currently waived by the Recovery Act and is expected to return in January, 2010.