The loan rate is determined by
market at the sale of a participation in a pool of
government guaranteed securities. The rate is fixed
for the term of the SBA/FoundationCapital loan. Generally, the rule of thumb in projecting
a rate is the 10 year Treasury rate, plus 210 base points. Market
rates are allowed on the private lending portion (50%
of project).
Current Rate
The 20 year effective rates as of December 2011 are as follows:
Regular 504 Program 20 year fixed rate 4.94%
Regular 504 Refinance Program 20 year fixed rate 5.14%
Regular 504 Program 10 year fixed rate 4.02%
Regular 504 Refinance 10 year fixed rate 4.27%
The fees listed below are based on the SBA portion of the loan and can be financed with the loan Borrower
- CDC Processing Fee: Up to 0.0150% of the 504 portion of the project
- Other Program Fees: 0.0025% Funding Fee
- 0.0040% (approximately - this fee is a complicated calculation)
Bank
- Participation Fee: One time 1/2% fee to SBA on lender's participation
