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).

Current Rate

The effective rates as of August 2018 are as follows:

Regular 504 Program 20 year fixed rate 5.301%

Fees

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)

Bank
•Participation Fee: One time 1/2% fee to SBA on lender’s participation