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 does the SBA determine guarantee fees?
The SBA determines the guarantee fee depending on the loan鈥檚 guaranteed portion, not necessarily the total loan amount. For example, if the SBA guarantees 75% of a $200,000 loan, that means the SBA covers the lender for a maximum of $150,000 if the borrower defaults.