Donna Genie breaks down temporary SBA 504 loan fee cuts running through September 2024. The upfront guarantee fee dropped to zero for loans up to $1 million, and fees for $1-2 million loans got cut by more than half. The bank fee stays at 0.5%.
October 1, 2023 through September 30, 2024.
0% (fee removed).
The fee was reduced by over half (relative to prior fee).
50 basis points (0.5%).
0%.
Hey there, small business owners and entrepreneurs. We've got some great news from the sba. This could 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 and buildings and getting into business. So the SBA has just announced that they have a decrease in their program fees for the 504 loans. 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 504, 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%.
