Certain SBA 504 fees are temporarily eliminated as authorized by the Economic Aid Act enacted late December, 2020. Any 504 loan approved from December 27, 2020, through September 30, 2021, 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.
See the actual project example below—amounts highlighted are temporarily eliminated:
The total fee relief amounts to about half of the typical amount of SBA fees being charged. The fees will be eliminated only for as long as appropriations remain available.