| The 504 Loan Is Better Than Ever
As a result of the Economic Aid Act, significant fees will be waived on 504 loans approved by September 30, 2021. This includes The CDC processing fee (1.5% of SBA loan), and The Third Party Lender Participation Fee (0.5% of lender’s permanent loan). This fee elimination is subject to availability of appropriations remaining for the fee offset.
The combination of a low equity requirement, terms up to 25 years, and fixed rates at historic lows, makes the 504 program better than ever. In addition to financing the purchase or expansion of commercial real estate, 504 loans may also be used to refinance conventional real estate and equipment loans. For more information, please contact a TCM loan officer.
NOTE- See Flowchart below for the latest information on the CARES Act Section 1112 payments. SBA issued the notice of reduced debt relief benefits today due to the insufficiency of funds appropriated.
Note: 10-year 504 loan fundings occur on an every other month basis. The above rate reflects the 10-year 504 rate for the March, 2021 funding. |
