The loan rate is determined by market at the sale of a participation in a pool of government guaranteed securities. The rate is fixed for the term of the SBA/FoundationCapital loan. Market rates are allowed on the private lending portion (50% of project).
The effective rates as of August 2018 are as follows:
Regular 504 Program 20 year fixed rate 5.301%
The fees listed below are based on the SBA portion of the loan and can be financed with the loan borrower:
•CDC Processing Fee: Up to 0.0150% of the 504 portion of the project
•Other Program Fees: 0.0025% Funding Fee
•0.005% (approximately – this fee is a complicated calculation)
•Participation Fee: One time 1/2% fee to SBA on lender’s participation