There are no up-front fees or deposits required by TCM. There are fees associated with the SBA 504 Loan that are required by SBA for every 504 Loan that is funded; these fees are approximately three percent of the SBA 504 Loan and are financed as a part of the loan. 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. In addition, there are servicing fees associated with the loan that are reflected in the effective interest rate. Finally, there are out-of-pocket expenses related to the SBA 504 Loan closing (which occurs separately from the bank closing), including but not limited to recording costs, filing fees, title insurance premiums, hazard insurance premiums, and flood insurance premiums (if applicable). Please see Loan Fees for a detailed description of these fees.