What Are the Fees for the SBA 504 Loan?

SBA 504 Loan Fees: What You Need to Know

A wide range of fees are charged in the 504 loan process. However, all of these fees are rolled into the loan in order to limit your upfront cash contribution requirements. The most common fees that you will be charged include the following:

  • SBA Guarantee Fee: 0.5% of the loan’s total value

  • Funding Fee: 0.25% of the loan’s total

  • CDC Processing Fee: 1.5% of the loans total

  • Closing Costs: Variable depending on loan amount

  • Underwriting Fee: variable depending on loan amount

  • Servicing Fees: Fees charged by the loan servicer over time, reducing in five-year increments.

  • Prepayment Premiums: Penalties for paying off your loan early, reducing over time (only due if you pay off the loan early).

  • Lender Participation Fee: A one-time fee charged to your conventional lender, equal to 0.5% of the first lien.

  • Additional Fees: A number of other fees may be charged during this process, including recording fees, closing fees assessed by the title company, title insurance fees, attorney’s fees, and more.

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