Sample Project

SBA 504 Loan Program’s Sources and Uses of Funds

piegraph10913
Use of Proceeds:
Land Costs $150,000
Building Costs $410,000
Equipment Costs $100,000
Refinance Debt
(Limited to 50% of new uses of funds)
$330,000
Soft Costs $10,000
Total Uses of Funds $1,000,000
Source of Funds:
Bank First Lien (50%) $500,000
504 Loan (30% to 40%) $400,000
Business Injection $100,000
(10% minimum; add 5% for start up
and 5% for special use buildings)
Total Sources of Funds $1,000,000
504 Loan Pricing:
504 Loan $400,000
SBA Fees (approximately 2.18%) $8,700
SBA Closing Costs (estimate) $5,300
Gross 504 Loan $414,000
Total 504 Loan Fees:
504 Financed Fees $14,000
Out-Of-Pocket Bank Guaranty Fee
(Bank loan x 0.5%)
$2,500
LESS: 504 Corporation Incentive ($2,000)
Total Estimated SBA Fees $14,500