SBA 504 Fee Reduction for FY2016

On September 28,2015, SBA announced a fee reduction for the SBA 504 Loan program effective October 1, 2015. 

This change is applicable to all SBA 504 Loan approvals dated
after October 1, 2015.

2 fees are being reduced:
1.) The one-time Guaranty Fee that SBA charges, which is built into the debenture pricing, is being reduced from 0.5% to zero.  This means overall cost to the borrower is reduced!
ALSO
2.) The annual “Borrower Fee” that SBA charges, which is built into the monthly interest rate, is being reduced from .9375% to .914%.  This will lower the overall effective rate on debentures.
 
Please read attached link to the SBA Information Notice dated September 28, 2015 for more detailed information on the FY 2016 fees in regard to both the SBA 504 Program and the SBA 7a Program
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