What are the associated costs and fees of a 504 loan?
A $2000.00 deposit is payable at the onset of your loan application. This deposit is applied to the fees associated with the preparation of your application (e.g. credit reports, certificate of good standing, etc). This deposit (less the aformentioned expenses) will be returned when your debenture sells. If the loan application is cancelled or the debenture does not sell, the deposit will not be returned. An initial deposit of $1500.00 for legal fees is also required. This deposit less expenses (e.g. filing fees, documentation preparation, etc.) will be returned upon the sale of the debenture. If the debenture does not sell the deposit will be used for legal fees incurred. Since the SBA 504 program does not rely on taxpayers’ dollars, the borrower must incur the the following administrative fees associated with the loan: Closing fees (approximately 2.25% of the 504 loan) Attorney closing fee of $2,500 Servicing fees (approximately .73% of the 504 loan) These fees are rolled into the lo
