SBA Information Notice 5000-836380
Summary
SBA Information Notice, control no. 5000-836380, effective August 15, 2022, addressed to SBA employees and Certified Development Companies, announcing the FY2023 fees for 504 loans approved October 1, 2022, through September 30, 2023. For 504 loans other than those under the 504 Debt Refinance without Expansion Program, the upfront guaranty fee is 0% (0 basis points) and the annual service fee 0.4405% (44.05 basis points) of the outstanding balance. Loans under the 504 Debt Refinance without Expansion Program also carry a 0% upfront guaranty fee, with their own annual service fee, and a separate notice covers 7(a) fees.
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Full text
SBA Information Notice
TO: All SBA Employees and Certified CONTROL NO.: 5000-836380
Development Companies
SUBJECT: 504 Fees Effective During Fiscal Year EFFECTIVE: August 15, 2022
2023
Each year SBA reviews certain fees payable to SBA by 504 borrowers to determine if any of
those fees need to be adjusted to cover the estimated subsidy costs of the 504 loan program.1
This Notice announces the FY2023 annual service fee (also known as the “on-going guaranty
fee”) and upfront guaranty fee for 504 loans. A separate notice is being issued for the 7(a) loan
program.
For all 504 loans, the following fees are effective for loans approved October 1, 2022,
through September 30, 2023:
For 504 loans (other than loans made under the 504 Debt Refinance without Expansion Program)
approved in FY2023:
1) The upfront guaranty fee will be 0% (0 basis points).
2) The annual service fee will be 0.4405% (44.05 basis points) of the outstanding balance of the
loan.
For 504 loans approved in FY2023 under the 504 Debt Refinance without Expansion Program:2
1) The upfront guaranty fee will be 0% (0 basis points).
2) The annual service fee will be 0.4405% plus 0.0154%, for a total of 0.4559% (44.05 basis
points plus 1.54 basis points for a total of 45.59 basis points) of the outstanding balance of
the loan.
1 Fees are effective for the entire fiscal year to maintain the estimated costs of the program unless subsequent Congressional acts
modify the program’s effective subsidy costs.
2 While Section 328(a)(1) of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act (P.L. 116-260)
repealed the requirement that the 504 Program be at zero subsidy for 504 Debt Refinance without Expansion Program to be
available, this repeal did not remove the subsidy fees for the 504 Debt Refinance without Expansion Program.
PAGE 1 of 2 EXPIRES: 8/1/23
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
Questions:
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Dianna L. Seaborn
Director
Office of Financial Assistance
PAGE 2 of 2 EXPIRES: 8/1/23
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
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