| 504 | N/A | $400,000 | 40% |
| Lender (90%) | $900,000 | $500,000 | 50% |
| Down Payment (10%) | $100,000 | $100,000 | 10% |
| Total Project (100%) | $1,000,000 | $1,000,000 | 100% |
| Loan Amount | $900,000 | $900,000 | $500,000 | $400,000 |
| Interest Rate1 | 7.00% | 5.76% | 7.00% | 4.16% |
| Years Amortized | 20 | 20 | 20 | 20 |
| 7(a) Guarantee Fee (paid up front) | $20,250 | N/A | N/A | N/A |
| 7(a) Processing Fee2 | $3,896 | N/A | N/A | N/A |
| 504 Lender Participation Fee | N/A | $2,500 | $2,500 | N/A |
| 504 Processing Fee (included in 504 note) | N/A | $6,000 | N/A | $6,000 |
| 504 Guarantee Fee (included in 504 note) | N/A | $2,000 | N/A | $2,000 |
| 504 Funding Fee (included in 504 note) | N/A | $1,000 | N/A | $1,000 |
| 504 Underwriter Fee (included in 504 note) | N/A | $1,636 | N/A | $1,636 |
| TOTAL SBA FEES | $24,146 | $13,136 |
| TOTAL NOTE AMOUNT | $900,000 | $911,000 | $500,000 | $411,000 |
| Monthly Payment | $6,978 | $6,402 | $3,876 | $2,526 |
| Effective Interest Rate | 7.00% | 5.76% | 7.00% | 4.16% |
| Total Principal & Interest | $1,678,616 | $1,536,551 | $930,359 | $606,193 |
| Cash Down Payment | $120,250 | $100,000 | ||
| Total Cash | $1,798,866 | $1,636,551 | ||
| 504 Cash Savings | $162,315 |
¹ The 5.76% interest rate is a blended rate of the 504 loan and the Lender loan.
² The 7(a) processing fee is paid by the Lender via the SBA 1502 report monthly on each 7(a) loan. The amount is .494% of the interest on the SBA quarantined portion of the loan.
³ 504 fees are included in the note amount and rounded to the nearest $1,000. In this example the $6,000 + $1,000 + $1,636 = $8,636 is rounded to $9,000 and is included in the note. This takes the 504 portion of the loan from $400,000 to $409,000. The rounding difference of $364 will be refunded to the borrower when the 504 loan is booked.