Twin Cities-Metro


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Twin Cities-Metro

 

 
 

Eligibility
Loan Process
Loan Requirements
Loan Fees

SBA 504 Debenture Pricing

SBA 504 Loan fees are financed as part of the debenture. The fees are calculated as a percentage based on the SBA portion of the project (the net debenture amount). The fees are described as follows:
SBA 504 Loan Fees: Paid To: Sample Debenture:
$400,000
Funding Fee (0.25%) Colson Services $1,000
CDC Processing Fee (1.5%) TCM $6,000
Legal Closing Costs ($1,595) TCM Attorney $1,595
Underwriters Fee* Harris Trust $1,644
SUBTOTAL
$10,239
Rounded to the next highest thousand (refunded to Borrower)

$761
TOTAL GROSS DEBENTURE
$411,000
*The Underwriters fee is based on the gross debenture amount, and as a result is calculated as follows: Subtotal of SBA fees as listed above, plus net debenture amount; this summation is divided by 0.996; round this number up to the next highest thousand; multiply number by 0.004.

Servicing Fees
Servicing fees are reflected in the effective interest rate and included in the monthly payment amount. These servicing fees are distributed to two entities: TCM (0.625%) and Colson Services Corporation (0.1%). At inception, these servicing fees are based on the total Loan amount (gross debenture); the fees are then reduced at each five-year interval, at which time they are based on the new outstanding Loan balance. TCM will provide you with the current effective rate, which is inclusive of these servicing fees.

First Mortgage Lender Participation Fee
A one-time fee is paid by the First Mortgage Lender. This fee is equal to one-half percent (0.5%) of the principal amount of the senior mortgage associated with the 504 Loan. The payment shall be submitted in the form of a certified check or a guaranteed funds check, payable to Colson Services Corporation at the time of the TCM 504 Loan closing.

Prepayment Premium
The Borrower may repay the entire outstanding Loan balance prior to the maturity date, but may not make partial prepayments. If the Borrower prepays during the first half of the term, there will be a prepayment premium. This premium is equivalent to one year's interest in the first year of the loan term, declining to zero at the midpoint of the loan term. A Schedule of the precise dollar amounts of the premium for each Loan is provided after the sale of the Debenture

Please note: Fees subject to change.