Loan Calculator

Enter your project cost and loan rates to determine your estimated monthly payments.

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Bank Loan $0.00 50%
$0.00
$0.00
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SBA Debenture Amount $0.00
SBA Reserve Guaranty Fee $0.00
SPEDCO Processing Fee $0.00
Funding Fee $0.00
Legal Fee $2,000.00
SUBTOTAL $2,000.00
Underwriting Fee (approx.) $8.00
SUBTOTAL $2,008.00
(rounded up to nearest thousand) $3,000.00
Amount Refunded to Borrower $992.00
ESTIMATED MONTHLY PAYMENTS
Bank Loan $0.00
SBA Loan $0.00
Total Monthly Payment
(Principle and interest)
$0.00

What comprises debenture pricing and how are SBA costs calculated?

Processing, initiation and funding fees

There are a number of fees associated with obtaining an SBA 504 loan. These are one-time only expenses that are financed along with the debenture. The fees are calculated on the net debenture amount and are made up of the following components:

  • A processing fee of 1.5% is paid to SPEDCO for marketing, screening, packaging, closing and general overhead.
  • The reserve/guaranty fee paid to SBA to offset loan losses and program administrative expense has been eliminated as of 10/1/2015.
  • A $2,000 legal fee to pay for the CDC/SBA attorney to prepare an Opinion of Counsel for the transaction. This fee also pays for an Opinion that covers the borrower’s transaction. Any excess fees will be used to help defray the costs of title insurance and recording documents.
  • A funding fee of .25% is collected for the Development Company Funding Corporation (DCFC) as the program’s fiscal agent, for managing the overall mechanism of selling and funding the debentures, and negotiating and managing the monthly debenture process. This includes payment for printing costs and debenture pooling and certification costs.
  • A debenture underwriting fee of .4% is paid to Harris Trust (.375% for 10-year loans) for security underwriting, marketing, the sales work done on a monthly basis, and for the legal work connected with the monthly funding.

NOTE:

  1. The $1,500 Retainer fee collected up-front at the time of application will be applied to out-of-pocket closing costs for items such as title insurance, recording fees and messenger fees. Expenses beyond this amount will be due from the borrower on the date of the SBA loan closing meeting.
  2. The Borrower can save on costs by using SPEDCO’s attorney to review its corporate documents and verify signers on loan closing documents, otherwise he/she will be required to engage the services of their own attorney to provide a legal Opinion of Counsel prior to the SBA loan closing.
  3. A Participation Fee equal to .5% of any Mortgages that are senior to the SBA Guaranteed Mortgage must be submitted in the form of a Certified Check at the time of the SBA closing.