C-Suite Wednesday – 504 Program Fees in Fiscal Year 2023
September 7, 2022
Delaney Sexton
Contributing Editor
C-Suite Wednesday – 504 Program Fees in Fiscal Year 2023
Starting on October 1, 2022, the following fees will be in effect for all approved 504 loans and continue through September 30, 2023.
For all 504 loans not made under the 504 Debt Refinance without Expansion Program, the fees are:
• The upfront guaranty fee: 0%
• The annual service fee: 0.4405% of the outstanding balance of the loan
For 504 loans approved under the 504 Debt Refinance without Expansion Program, the fees are:
• The upfront guaranty fee: 0%
• The annual service fee: 0.4559% of the outstanding balance of the loan
For the 7(a) program
The 7(a) Lender’s Annual Service Fee based on the gross loan approval amount will be:
• $500,000 and less: 0%
• $500,001 to $5,000,000: 0.55% of the guaranteed portion of the outstanding balance of the loan.
The Upfront Fees for loans with a maturity date that exceeds 12 months will be:
• $500,000 or less: 0%
• $500,001 to $700,000: 0.55% of the guaranteed portion
• $700,001 to $1,000,000: 1.05% of the guaranteed portion
• $1,000,001 to $5,000,000: 3.5% of the guaranteed portion up to $1,000,000, plus 3.75% of the guaranteed portion over $1,000,000
Loans that have a maturity of 12 months or less will have Upfront Fees of:
• $500,000 or less: 0.00%
• $500,001 and greater: 0.25% of the guaranteed portion