August 2017
Commercial Lending
Fees Cut on SBA 504 Loans for FY 2018

Program fees paid on Small Business Administration (SBA) 504 loans will decrease for fiscal year 2018, according to a recent announcement by the Agency. These changes are applicable only for loans approved on or after Oct. 1, 2017.

SBA Cuts Fees on 504 Loans for FY 2018Upfront SBA Guarantee Fee:

The Upfront SBA Guarantee Fee will continue to be zero for both standard and refinance 504 loans. (Note: this is not the bank fee, which is paid on the first mortgage amount.)

Ongoing SBA Borrower Fee:

The Ongoing SBA Borrower Fee for 504 standard loans (paid annually) has been reduced from 0.697% (69.7 basis points) to 0.642% (64.2 basis points) of the outstanding balance of the loan.

The Ongoing SBA Borrower Fee for 504 refinance loans (paid annually) has been reduced from 0.731% (73.1 basis points) to 0.682% (68.2 basis points) of the outstanding balance of the loan.

The SBA’s 2016 fiscal year runs from Oct. 1, 2017, through Sept. 30, 2018.

For more information about SBA 504 loans in Florida, South Alabama or South Georgia, contact a Florida First Capital Loan Officer or email us at info@ffcfc.com.  Phone: 850.681.3601 or toll-free at 888.320.5504.