DomainScoreSBA Loan Calculator

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.