Get TO All SBA Employees SUBJECT 7(a) Fees And 504 Fees Effective On - Sba

Are SBA guarantee fees being waived? SBA guarantee fees are waived for veteran-owned businesses borrowing under the 7(a) Express loan program. Guarantee fees for loans under the Export Working Capital Program (EWCP) are also waived.

SBA 504 loans currently charge 0.5% of the loan amount for their guaranty fees, while non-7(a) microloans have no guaranty fee.

For a loan with a maturity in excess of twelve (12) months, the Lender must pay the guaranty fee to SBA electronically within 90 days after SBA gives its loan approval. The Lender may charge the Borrower the fee after the Lender has made the first disbursement of the loan.

An SBA 504 loan is commercial real estate financing for owner-occupied properties. These loans require only a 10 percent down payment by the small business owner and funding amounts range from $125,000 to $20 million. On the other hand, SBA 7a loans can be used to buy a business or obtain working capital.

SBA 7(a) loan terms The maximum term lengths for SBA 7(a) loans typically depend on the use of loan proceeds: 25 years for real estate. 10 years for equipment. 10 years for working capital or inventory loans.

The 504 Loan Program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities.