The SBA has announced its fee structure for Fiscal Year 2025 (starting October 1, 2024), and it’s time to get informed.
504 fees are reduced and 7(a) remain the same!
SBA 504:
- The upfront SBA guarantee fee:
- Remains at 0% for both standard projects and refinance without expansion.
- Annual Service Fee (included in the fully effective rate):
- Will be 0.331% (33.1 basis points) for standard loans, which is a decrease from this Fiscal Year at 0.364% (36.4 basis points).
- Will be 0.356% (35.6 basis points) for refinance without expansion loans, which is a decrease from this Fiscal Year at 0.389% (38.9 basis points).
SBA 7a:
- Upfront guarantee Fee:
- Loans of $1.0 million or less: 0%.
- Loans above $1.0 million to $5.0 million: 3.5% of the guaranteed portion of the loan up to and including $1.0 million, plus 3.75% of the guaranteed portion of the loan over $1.0 million.
- Short term loans greater than $1.0 million the fee will be 0.25% of the guaranteed portion.
- Annual Service Fee:
- Loans up to $500,000: 0% of the guaranteed portion of the outstanding balance of the loan.
- Loans above $500,000 to $1.0 million: 0.17% of the guaranteed portion of the outstanding balance of the loan.
- Loans above $1.0 million to $5.0 million: 0.55% of the guaranteed portion of the outstanding balance of the loan.
With these reduced fees, it’s an opportune moment to explore SBA loan options. At Great Lakes Commercial Finance, we’re your trusted experts in Michigan for SBA 504 and 7(a) loans. Reach out to work with us today!