In order to receive these fee eliminations, a new 504 loan needs to be approved prior to September 30, 2021. Since SBA is now at an approximate 20 business day turn around, it is not too early to get your 504 applications in to be processed. Approved applicants will receive fee elimination on two fees as follows:
- The 1.50% CDC Processing Fee charged to the Borrower as included in the debenture pricing.
- The 0.50% Third Party Lender Participation Fee paid by the Third Party Lender on its loan that is in senior lien position to the 504 Loan.
The total fee relief amounts to about half of the typical amount of SBA fees being charged. Contact FDDC to get started on an application!