Estimated SBA 504 Effective Rates for October 2019*

25-year – 3.46% / 3.49% Refi
20-year – 3.36% / 3.39% Refi
10-year – 3.56% / 3.60% Refi

*Based on the lower annual service fee.

Effective: October 1, 2019 – September 30, 2020

SBA has released annual fees for 504 loans that will be approved in the fiscal year 2020. These annual fee changes will help keep the monthly rates lower.

On September 16, 2019, SBA provided information on the fees for 504 Loans approved during FY2020. These changes are applicable only to loans approved on or after October 1, 2019 through September 30, 2020.

For 504 loans approved during FY2020

The upfront guaranty fee for 504 borrowers will remain at 0.50% (50 basis points) in FY2020. The annual service fee is reduced to 0.3205% (32.05 basis points) of the outstanding balance of the loan.

For 504 Debt Refinance loans approved during FY2020

The upfront guaranty fee for 504 borrowers will remain at 0.50% (50 basis points) in FY2020. The annual service fee is reduced to 0.3205% plus 0.0015%, for a total of 0.3220% (32.05 basis points plus 0.15 basis points) of the outstanding balance of the loan.

Third Party lenders Loans Fees

SBA published the maximum interest rate for Third Party Lender Loans for 504 Projects effective October 1, 2019 for the October-December 2019. The maximum legal interest rate for a third party lender loan which funds any portion of the cost of a 504 project shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State.

Rates over the Years

In the month of September,
NWBDA helped create 17 new
jobs in the local communities

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