SBA SOP 50 10 8, A.Ch4.E.2 — Allowable Fees
Verbatim text of SBA SOP 50 10 8 section A.Ch4.E.2 (Allowable Fees), effective 2025-06-01. 9 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, A.Ch4.E.2 — Allowable Fees — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8 A.Ch4.E.2
2. Allowable Fees The fees that a 504 Borrower may be charged can be found at: 13 CFR §§ 120.971, 120.972, 120.883(e) and 120.882(g)(4) and are described in the table below. Fees that a 504 Borrower May be Charged CDC Fees
SOP 50 10 8 A.Ch4.E.2.1
(1) Processing fee (Packaging fee) Up to 1.5% of the Net Debenture Paid by Borrower to CDC. CDC may charge a reasonable closing fee –sufficient to reimburse it for the expenses of its in-house or outside legal counsel, and other miscellaneous closing costs. Paid by Borrower. Maximum of $10,000 may be financed from the debenture proceeds.
SOP 50 10 8 A.Ch4.E.2.1.2
(2) Closing Fee Minimum of 0.625%/year. Maximum of 2%/year Note: Maximum 1.5% for rural areas and 1% for everywhere else without prior SBA approval. Based on the unpaid principal balance of the loan – paid by Borrower to CDC
SOP 50 10 8 A.Ch4.E.2.1.2.3
(3) Servicing fee (monthly) Loan payments received after the 15th of each month may be subject to a late payment fee of 5% of the late payment or $100, whichever is greater. Collected by CSA (Central Servicing Agent) on behalf of the CDC. (4) Late fees Fees that a 504 Borrower May be Charged Not to exceed 1% of the outstanding principal balance of the loan being assumed. Upon SBA’s written approval
SOP 50 10 8 A.Ch4.E.2.1.2.5
(5) Assumption fee –paid by Borrower to CDC. CSA Fees Initiation fee In accordance with the contract between the CSA and SBA. On-going fee In accordance with the contract between the CSA and SBA. Underwriter’s Fees Underwriter’s fee for 20 and 25-year Debenture Upfront fee of 0.4% Paid by Borrower to Underwriter. Underwriter’s fee for 10-year Debenture Upfront fee of 0.375% Paid by Borrower to Underwriter. SBA Fees
SOP 50 10 8 A.Ch4.E.2.1.2.1
(1) SBA Guaranty Fee – (up-front fee) Refer to www.sba.gov for notices on fee updates by fiscal year One-time fee Fee is adjusted annually by cohort year (based on date the individual loan was approved) and is charged on the unpaid principal balance of the loan.
SOP 50 10 8 A.Ch4.E.2.1.2.2
(2) Annual Fee – (Ongoing fee) Refer to www.sba.gov for notices on fee updates by fiscal year A one-time fee from the Third Party Lender if in a senior lien position to SBA in the project. The fee may be paid by the Third Party Lender, CDC, or Borrower.
SOP 50 10 8 A.Ch4.E.2.1.2.3
(3) Participation Fee – Senior Lienholder 0.50 % of the senior mortgage loan – One -time fee The fee must be paid from the servicing fees collected by the CDC and cannot be paid from any additional fees imposed on the Borrowers (loans approved by SBA after 9/30/1996). On-going fee to SBA of 0.125% of the outstanding principal balance of the Debenture – Annual Fee (4) CDC Fee
SOP 50 10 8 A.Ch4.E.2.1.2.5
(5) Debt Refinancing Without Expansion Supplemental Fee Refer to www.sba.gov for notices on fee updates by fiscal year Paid by Borrower. Fees that a 504 Borrower May be Charged Changed to cover the costs incurred by the trustee, fiscal agent, and transfer agent. Funding Fee 0.25% of the net Debenture Proceeds
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