SBA 504 Loan Rates and Fees Guide
Understanding current interest rates, fee structures, and total costs of SBA 504 loans
Current SBA 504 Loan Interest Rates
CDC/SBA Portion (40%)
The CDC portion features fixed rates based on:
- Current market rate for 5 and 10-year U.S. Treasury issues
- Fixed for the entire loan term
- Typically lower than conventional commercial rates
- Rate set at time of debenture sale
Bank Portion (50%)
The bank portion rates are:
- Negotiated with the lender
- Can be fixed or variable
- Based on Prime rate or LIBOR
- Market competitive rates
SBA 504 Loan Fee Structure
One-Time Fees
- CDC Processing Fee: Typically 1.5% of CDC portion
- SBA Guarantee Fee: 0.5% of debenture
- Funding Fee: 0.25% of debenture
- Attorney Fees: Varies by location and complexity
- Title Insurance: Required for real estate
- Appraisal Fees: Required for real estate
Ongoing Fees
- CDC Servicing Fee: 0.625% to 2% annually
- Central Servicing Fee: 0.1% annually
- SBA Guarantee Fee: 0.125% annually
- Bank Servicing Fees: Varies by lender
Sample Cost Breakdown
Example for $1 Million Project
- Bank Portion (50%): $500,000
- CDC Portion (40%): $400,000
- Down Payment (10%): $100,000
- Estimated One-Time Fees: $15,000 - $20,000
- Annual Ongoing Fees: $4,000 - $6,000
Factors Affecting SBA 504 Loan Rates
Business Factors
- Credit score and history
- Time in business
- Industry type
- Collateral quality
- Cash flow strength
Market Factors
- Current Treasury rates
- Federal Reserve policy
- Market conditions
- Local economic factors
- Competition among lenders
Calculate Your SBA 504 Loan Payments
Use our calculator to estimate payments based on current rates and your project needs.