504 Borrower Fee to Drop

President Bush’s proposed fiscal year 2004 budget lowers the 504 program borrower fee by nearly 8%. Full Text.

The 504 FY 2004 borrower fee declines from 0.425% per annum to 0.393% per annum, roughly an 8% decrease. This will lower the effective rate on all 504 loans beginning in October. Not only does this signify lower fees for borrowers but also the continuation of the fee’s downward trend, which began in fiscal year 2001.

Historical fees:

Year Borrower Fee

2000 0.600

2001 0.472

2002 0.410

2003 0.425

2004 0.393