504 Deal Structure            
             
             
 
    *The spread between the Note Rate and the Effective Rate is made up of servicing fees included in the 504 monthly payment, similar to an APR.  
Note Rate
Eff Rate*
Land
Building
Construction
Contingency
  FF&E                  
  Prof. Fees                  
Other
  Total Cost                  
Source Amount %
  Has this business been in operation for 2 yrs or more?   Bank Loan  
504 Loan
  Will this finance a "special purpose" building?       Cash Down  
 
        Total Loans    
Bank Int Rate
%
Mo Bank Pmt 
Bank Amort
yrs
Mo 504 Pmt
Bank % of Proj
%
Total Pmt
Cash Down %
%
Annual Debt
Estimated Prepayment Penalty
         
           
                       
  Data for  Loan Comparisons           Comparison of Financing
                       
  Conventional Bank Loan           504 + Bank Conventional SBA 7(a)
              Project financing %
  Loan to Value   %     Amortization (yrs)
  Amortization   yrs     Interest rate %  
  Interest Rate   %     Total financing
  Lender Fee         Monthly payment
              Eff int rate  
  SBA  7(a) Loan       Eq injection
                       
  Loan to Value   %              
  Amortization   yrs              
  Interest Rate   %              
                       
                       
                       
504 Loan
Project financing %
                Amortization (yrs)    
                Interest rate %    
Total financing
Monthly payment
                       
Bank Loan
Project financing %
Amortization (yrs)
Interest rate %
Total financing
Monthly payment
Fees included in gross loan amount
SBA/CDC Share
Financing Cost
Guarantee fee
504
Funding fee
Interest cost
Processing fee
SBA-bank fee costs
CDC Closing fee
Subtotal
Bank
Underwriter's fee
Interest cost
TOTAL
SBA-bank fee costs
SBA 504 Portion of Project
SBA 504 Note with fees
504 + Bank
Balance to borrower
Interest cost
SBA-bank fee costs
SBA fees collected at closing:
Total cost - int&fees
Conventional
SBA Lender fee
Interest cost
SBA-bank fee costs
Total cost - int&fees
SBA (7a)
Interest cost
SBA-bank fee costs
Total cost - int&fees
Gross debenture:
Funding fee
Processing fee
CDC Closing fee
Subtotal
Underwriter's fee
Total
First 5 years pmt
Second 5 years pmt
Third 5 years pmt
Forth 5 years pmt
Average  20 & 25pmt
Average  10pmt