SBA 504 Loan Interest Rates
Official monthly SBA 504 effective interest rate tables can be found at Eagle Compliance LLC. 25- and 20-year term loans fund every month; 10-year term loans fund every other month. Effective interest rates are inclusive of servicing fees, which are subject to credit risk of the applicant.
A1 - Most borrowers and/or their CPAs are looking for 1098 interest statements this time of year as evidence of the interest paid on their various mortgage loans. Every certified development company (CDC) receives a full reporting from Colson Services Corporation for its portfolio and typically has the information available no later than Jan. 31. Per IRS rules, a 1098, Mortgage Interest Statement, is used to report mortgage interest of $600 or more received by (the lender) from an individual, including a sole proprietor. The $600 threshold applies separately to each mortgage; thus, the lender files a separate Form 1098 for each mortgage as noted above.
A2 - A lender is not required to file Form 1098s for interest on a mortgage received from a corporation, partnership, trust, estate, association or company (other than a sole proprietor) even if an individual is a co-borrower and all the trustees, beneficiaries, partners, members or shareholders of the payer of record are individuals. Also, a 1098 is only for reporting interest paid on a mortgage and mortgage is defined as any obligation secured by real property. So, if you have an equipment loan, you also would not receive a 1098.
A3 - Each CDC probably operates a little differently in this area, but at Florida First Capital, all you have to do is contact the Loan Administration (Servicing) area at the Tallahassee headquarters and a loan servicing officer can provide a standardized form with the information you need. This is because Colson Services Corporation and the SBA have agreed that every borrower should have access to a 1098-like form, so regardless of reporting requirements, such a form is available on every 504 loan.
A4 - Just contact the Loan Administration (Servicing) area at the Tallahassee headquarters at 850.681.3601 or toll-free at 888.320.5504 and one of our professional loan servicing officers will be able to provide you with a fax or email of the 1098 form.
If you have a question you'd like our SBA 504 loan experts to answer, email us at info@ffcfc.com or call 888.320.5504. Click here for an FFCFC staff directory.
