September 30, 2019
By Bob Coleman
Editor, SBA Hot Topic Tuesday
SBA Hot Topic Tuesday (Monday Edition) — 7(a) Fees Effective for the Period October 1, 2019 through November 21, 2019
SBA Information Notice 5000-19021
7(a) Fees Effective for the Period October 1, 2019 through November 21, 2019
Annual Service and Upfront Guaranty Fees for All 7(a) Loans.
The following fees are effective for all 7(a) loans approved October 1, 2019, through November 21, 2019:
1) The annual service fee will be 0.55% (55 basis points) of the guaranteed portion of the outstanding balance of the loan. Lenders must manually adjust this fee in the current Authorization Wizard.
2) The upfront guaranty fee will continue to depend on the loan amount and the maturity of the loan.
a) For loans with a maturity that exceeds 12 months, the fees are:
i) For loans of $150,000 or less: 2% of the guaranteed portion. Lenders may continue to retain no more than 25% of this fee (i.e., at least 1.5% must be remitted to SBA).
ii) For loans of $150,001 to $700,000: 3% of the guaranteed portion.
iii) For loans of $700,001 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.
SBA Information Notice 5000-19020
504 Debenture Funding Schedule for Calendar Year 2020
The purpose of this notice is to publish the SBA 504 debenture funding schedule for calendar year 2020. The schedule dates provide enhanced program marketability with investors. The monthly Central Servicing Agent (CSA) cut-off date will continue to be scheduled approximately fourteen days prior to the pricing date. The 20 and 25 year debentures will be offered monthly while the months marked with an asterisk (*) will include the sale of 10, 20 and 25-year debentures.