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  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
$0
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