Donna Genie explains SBA 504 loan fees dropping temporarily. The upfront SBA guarantee fee hits 0% for loans up to $1 million, and fees for $1-2 million loans get cut by over half. The changes run October 1, 2023 through September 30, 2024.
October 1, 2023 through September 30, 2024.
0% (removed completely).
Reduced by over half (compared to prior fee).
50 basis points (0.5%).
Hey there, small business owners and entrepreneurs. We've got some great news from the sba. This can be a game changer if you're looking at getting a loan with the SBA. With their business financing and their 504 loans, it's basically for expanding business and buying equipment, buildings, and getting into business. So the SBA has just announced that they have a decrease in their program fees for the 504 loans. Now, many times people look at 504 loans and say, oh, my gosh, the interest rate is high and there are all these fees tacked on top. Well, the good news for you is that up to $1 million in SBA loans on a 500, the fee has been removed completely. If you are looking at loans between a million and 2 million, the fee has been reduced by over half. Great news. So if we break down these changes, effective October 1, 2023, through September 30, 2024, so one year, the fees are reduced to zero. The upfront SBA guarantee fee will be 0%. Good job. And there's no extra percent on top for these loans. So keep in mind that the bank fee still is 50 basis points, or 0.5%.
