SBA Loan Fee Waiver Set To Expire

If you are considering applying for an SBA 7a or 504 loan you need to apply NOW if you want to avoid paying the SBA loan fees because the fee waiver period expires Dec 31st.

Loans that are approved by a lender and issued an SBA Authorization prior to Dec 31st should get the fee waiver.  Those that miss out will pay more for their loan.

SBA 7a Loan Fees

Here is a calculation of SBA fees for 7a loan of $2,000,000 assuming a 75% SBA Guaranty.  Please note: SBA fees are paid on the “guaranteed portion” of the loan amount and the 75% Guaranty will be back in place in January.

3.5% on the guaranteed portion up to $1,000,000 or $35,000 ($1,000,000 x 3.5%)

3.75% on the guaranteed portion above $1,000,000 or $18,750 ($500,000 x 3.75%)

Total SBA Guaranty Fee = $53,750

SBA 504 Loan Fees

The SBA 504 fees that are currently waived are “the bank participation fee” of 0.5% and the certified development company (CDC) processing fee of 1.5% both of which can also add up to a sizeable amounts.

Keep in mind the fees are typically financed into the loan(s), but it is real money that can be saved if you have an “approvable” loan and you act quickly.  Lenders are either already inundated (or about to be) and December is a short month with the Holidays.