SBA 504 Loan Program’s Sources and Uses of Funds
| Use of Proceeds: |
| Land Costs |
$150,000 |
| Building Costs |
$410,000 |
| Equipment Costs |
$100,000 |
Refinance Debt
(Limited to 100% 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) |
$7,300 |
| Gross 504 Loan |
$416,000 |
| Total 504 Loan Fees: |
| 504 Financed Fees |
$16,000 |
Out-Of-Pocket Bank Guaranty Fee
(Bank loan x 0.5%) |
$2,500 |
| LESS: 504 Corporation Incentive |
($2,000) |
| Total Estimated SBA Fees |
$16,500 |
