Rates & Fees

SBA 504

Interest Rates 

Interest rates for the Small Business Administration 504 loan program are set on a monthly basis from a bond sale. They are fixed for the life of the loan and fully amortized up to 25 years. (10-year interests rates are set every other month.) 

Borrowers will not have access to their 504 interest rate until their loan has funded, at which time B:Side Capital contacts the borrower with that information.

• SBA 504 25-year fixed interest rate = 6.076%

• SBA 504 20-year fixed interest rate = 6.146%

• SBA 504 10-year fixed interest rate = 5.875%

SBA 504 Refinance with Expansion loans receive the above rates.

Standalone Debt Refinance Interest Rates:

• SBA 504 Refinance 25-year fixed interest rate = 6.105%

• SBA 504 Refinance 20-year fixed interest rate = 6.146%

• SBA 504 Refinance 10-year fixed interest rate = 5.912%

Fees

There are a variety of fees associated with the SBA 504 program, which are independent of any fees charged by the partner lender to the borrower. 

• A one-time origination fee of 2.15% of the SBA 504 portion of the loan, includes:

  • Funding fee: 0.25%

  • Guaranty fee: 0%

  • Processing fee: 1.5%

  • Underwriter’s fee: 0.4% (20-year rate) or .375% (10-year rate)

• A one-time bank participation fee of 0.5% of the bank's loan amount

• Attorney closing costs of $2,500

• Recording and title costs (typically financed as part of the loan)

SBA 504 Historical Rates

* indicates FY2023 rates not yet available

SBA 7(a) 

Interest rates

Interest rates for SBA 7(a) loans vary depending on the size of the loan and whether or not the lender providing the loan chooses to use variable or fixed rate pricing. Interest rates outlined below are the maximum rates a lender can charge while market rates may actually be lower than the maximum.

UPfront sba Guarantee Fees (charged on the sba guaranteed portion)

For loans with a maturity that exceeds 12 months, the Upfront Fees are:

• For loans of $1,000,000 or less: 0.00%

• For loans of $1,000,001 to $5,000,000: 3.5% of the guaranteed portion of the loan up to and including $1,000,000, plus 3.75% of the guaranteed portion of the loan over $1,000,000

For 7(a) loans with a maturity of 12 months or less (Short-term loans):

• Loans of $1,000,000 or less: 0.00%

• Loans $1,000,001 and greater: 0.25% of the guaranteed portion

7(a) Lender’s Annual Service Fee

• For loans of $500,000 and less: 0.00%

• For loans of $500,001 to $1,000,000: 0.17% of the guaranteed portion of the outstanding balance of the loan

• For loans of $1,000,001 to $5,000,000: 0.55% of the guaranteed portion of the outstanding balance of the loan

Packaging Fees: For fees charged based on a percentage of the loan amount, the fee may not exceed what the Lender charges on a percentage basis for the Lender’s similarly-sized non-SBA guaranteed commercial loans or the following, whichever is less:

i) 5% on loans $150,000 or less;

ii) 3% for loans in excess of $150,000;

iii) the maximum fee that may be charged to an Applicant on a percentage basis is $30,000