SBA SOP 50 10 8.1, A.Ch4.E.2 — Allowable Fees

SOP 50 10 8.1 A.Ch4.E.2

Effective 2026-10-01 · publisher's stamp for this provision

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 (1) Processing fee (Packaging fee) | Up to 1.5% of the Net Debenture | Paid by Borrower to CDC. (2) Closing Fee | Maximum of $10,000 may be financed from the debenture proceeds. | 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. (3) Servicing fee (monthly) | 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 (4) Late fees | 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. (5) Assumption fee | Not to exceed 1% of the outstanding principal balance of the loan being assumed. | Upon SBA’s written approval –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 (1) SBA Guaranty Fee – (up-front fee) | Refer to www.sba.gov for notices on fee updates by fiscal year | One-time fee (2) Annual Fee – (Ongoing fee) | Refer to www.sba.gov for notices on fee updates by fiscal year | 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. (3) Participation Fee – Senior Lienholder | 0.50 % of the senior mortgage loan – One -time fee | 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. (4) CDC Fee | On-going fee to SBA of 0.125% of the outstanding principal balance of the Debenture – Annual 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). (5) Debt Refinancing Without Expansion Supplemental Fee | Refer to www.sba.gov for notices on fee updates by fiscal year | Paid by Borrower. Funding Fee | 0.25% of the net Debenture Proceeds | Charged to cover the costs incurred by the trustee, fiscal agent, and transfer agent.

Source: SBA SOP 50 10 8.1, A.Ch4.E.2 — Allowable Fees · source URL · snapshot 0fb0c4692cf52938