Enter 10 year debenture rate:
1.84%
10 Year 504 Project Structure
504 Project Name
Purchase land and/or building
Bank interest rate
Furniture fixtures & equipment
Bank amortization (yrs)
Construction cost
Bank project percentage
Construction contingency
Borrower equity percentage
Professional fees & soft cost
504 project percentage
Total project
504 note rate (FIXED)
effective 504 rate
Finance Structure
Bank loan
Bank loan monthly payment
504 loan
504 loan monthly payment
Total finance package
Annual debt service
Required equity injection
How this 504 loan compares to Conventional financing
504 loan =
504
Conventional
Interest rate
Term in years
10
Total interest expense
*504 bond issuance fee
$ -
**504 monthly servicing fees
$ -
***504 bank lender fee
Bank fee
***504 attorney fee
$ 1,500
$ -
Total principal, interest & fees
*The bond issuance fee is added to the 504 note and amortized over the life of the loan and INCLUDED in the 504 monthly payment
**The cumulative of monthly fees paid to Wells Fargo, SBA & Premier Capital and INCLUDED in the 504 monthly payment
***Fees paid at closing
Paying off the 504 loan early
A 504 loan can be paid off at any point in the loan term. There is a prepayment premium, however, in years 1 -10:
An example of prepayment premiums for this loan would be:
in year 2
in years 6 - 10
$0
in year 4
in year 5
Rates and terms are for estimation purposes and not a commitment to lend.
Actual terms are subject to eligibility and underwriting of borrower and property
Pmt #
Amount
Estimated
Estimated
Penalty Schedule
"Pmt#" is monthly payment number
Debenture Rate
6
Effective Rates
Monthly Pmts.
Year
Penalty
Loan Amount
12
1
CDC fee
0.625%
18
2
Borrower fee
0.6420%
24
3
CSA fixed fee
0.100%
30
4
Note rate
36
5
Total interest
42
Total fees
48
Debenture fee
54
60
Beginning
Closing
Monthly
Principal
Scheduled
Scheduled
Monthly
total
Principal
Mo. Effective
Period
Balance
Principal
Interest
Fees
pmt
Balance
Rate
penalty
0
openUPB*rate
1
SA deb
mo./pmt
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