For all SBA 504 loans approved after October 1, 2020, the Ongoing Borrower Guarantee Fee has changed. This fee is added to the debenture rate each month and is included in the full term effective interest rate that is quoted for 504 loan rates. The current fee of 0.3205% increased to 0.4517%, representing a rise of 13.12 basis points. The ongoing fees are calculated on the average remaining balance of the 504 loan over five year periods. The Ongoing Borrower Guarantee Fee is adjusted annually in October to offset the costs of maintaining the 504 program, since it is not subsidized by the U.S. Government.