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SBA Notice 5000-20045

Summary

SBA Information Notice, control no. 5000-20045, effective September 15, 2020, addressed to SBA employees and Certified Development Companies, announcing the FY2021 fees for 504 loans approved October 1, 2020 through September 30, 2021. For 504 loans other than those under the 504 Debt Refinance without Expansion Program, the upfront guaranty fee is 0.50% (50 basis points) and the annual service fee 0.4517% (45.17 basis points) of the outstanding balance. The notice then gives the fees for loans under the 504 Debt Refinance without Expansion Program and notes that a separate notice covers 7(a) fees.

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Full text

                       SBA Information Notice

TO:           All SBA Employees and Certified                                       CONTROL NO.: 5000-20045
              Development Companies
                                                                                    EFFECTIVE: September 15, 2020
SUBJECT: 504 Fees Effective During Fiscal Year
         2021




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 FY2021 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, 2020
through September 30, 2021:

For 504 loans (other than loans made under the 504 Debt Refinance without Expansion Program)
approved in FY2021:

1) The upfront guaranty fee will be 0.50% (50 basis points).
2) The annual service fee will be 0.4517% (45.17 basis points) of the outstanding balance of the
   loan.

For 504 loans approved in FY2021 under the 504 Debt Refinance without Expansion Program:

1) The upfront guaranty fee will be 0.50% (50 basis points).




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.
PAGE 1 of 2                                                                                 EXPIRES: 9/1/21
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
2) The annual service fee will be 0.4517% plus 0.0348%, for a total of 0.4865% (45.17 basis
   points plus 3.48 basis points for a total of 48.65 basis points) of the outstanding balance of
   the loan.


Questions concerning this Notice should be directed to the Lender Relations Specialist in the
local SBA Field Office. The local SBA Field Office may be found on the Local Assistance page
of SBA’s website.




Dianna L. Seaborn
Director
Office of Financial Assistance




PAGE 2 of 2                                                                                 EXPIRES: 9/1/21
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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