SBA 504 Loan Fees Take a Dive!

30 Nov 2023 · 1 min

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YouTube video (Donna Genie) announcing SBA reductions in fees for 504 loans effective October 1, 2023–September 30, 2024. Key points: upfront SBA guarantee fee reduced to 0% for loans up to $1 million, fees for $1M–$2M reduced by over half, and banks still charge a 0.5% (50 bps) fee. Aimed at small business owners considering expansion, equipment, or real estate financing.

Questions this video answers

October 1, 2023 through September 30, 2024.

0% (removed completely).

The fee has been reduced by over half (relative to prior rates).

50 basis points (0.5%).

Chapters

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 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. 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 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%.