20 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)
Finance Structure
Bank loan Bank loan monthly payment
504 loan 504 loan monthly payment
Total financing Annual debt service
Required equity injection
How this 504 project compares to Conventional & 7(a) financing
Conventional 7(a)
504 Loan Bank Loan
LTV
Term in years 20
Note rate
Total financing
Total interest expense
*SBA 7(a) 75% guarantee fee $ - $ - $ -
*504 bond issuance fee $ - $ - $ -
**504 monthly servicing fees $ - $ - $ -
***504 Bank / lender fee
***504 Attorney fee $ 1,500 $ - $ - $ -
Sub total
Total principal, interest & fees
Required equity injection
Total project cost
Effective interest rate
Montly payment
* 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 the 504 loan off early
A 504 loan can be paid off at any point. There is a prepayment penalty in years 1 -10:
Examples of prepayment penalties for this 504 loan:
In year 2 In year 8
In year 4 In year 10
In year 6 In years 11 - 20
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.