Sample of a 504 Loan

Use of Proceeds

Land & Building$1,800,000
Improvements$180,000

Soft Cost:

Appraisal / Environment$3,000
Bank Points / Interest$12,000
Escrow & Title$5,000
Total Soft Costs$20,000
Total Project Costs$2,000,000

Finance Structure - SBA 504 Loan:

Lender 1st Mortgage Loan50%$1,000,000
Net Debenture Proceeds40%$800,000
Borrower10%$200,000
Total Project Cost100%$200,000
Lender Interim Loan$800,000
Reserve Account Fee (0.5%)$4,000
CDC Processing Fee (1.5%)$12,000
Funding Fee (0.25%)$2,000
Legal Closing Fees$1,200
Underwriting Fee (0.40%)$3,292
Balance to Borrower$508
Gross Debenture$823,000

**Borrower is responsible for title fees, tax service and any other incidental closing costs associated with funding the 504 debenture.

**Interest rate subject to change.


   

 

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