With an SBA 504 Loan, most business owners can get up to$5,000,000from the SBA and certain circumstances will allow them to get up to $5,500,000. However, this does not mean there is a cap on total project cost like there is with the 7a loan. Due to the unique structure of the SBA 504 Loan, there is no limit to the total project cost.
People also ask
What are the largest SBA loan fees?
The largest SBA loan fee is usually the guarantee fee. Initially paid by the lender, the fee is almost always passed on to the borrower at closing and typically is rolled into the whole loan. The amount you鈥檙e charged as a guarantee fee is based on the size and term of your loan.
Does the calculator take into account the fees associated with SBA loans?
Our calculator does not take into account the fees associated with SBA loans. These include fees for lender origination, SBA loan guarantee, loan packaging, and closing costs. Some fees can be rolled into your total loan amount while others may require that you pay them upfront.
Does the SBA give out loans?
The SBA does not give out SBA loans. Instead, the SBA guarantees portions of loans and works with verified lenders to provide financial assistance to small businesses. 鈥淕uaranteeing鈥?a loan means the SBA promises to pay back a particular portion of the loan amount if the borrower defaults.
How much down payment do you need for an SBA loan?
The 7 (a) loan is the most popular SBA product 鈥?and with good reason. Business owners can access up to $5.5 million in capital with repayment terms of anywhere from half a decade to 25 years. The general rule of thumb for an SBA 7 (a) loan down payment is that it should equal 10% of the loan amount.