504 Borrower Fee Declines 27%

Effective October 1st, the 504 borrower fee declined from 0.393% per annum to 0.288% per annum, a 27% decrease and the 5th consecutive annual reduction.

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. The decrease is attributed to a low default rate nationwide and an improving recovery rate forecast by SBA.
Historical fees:
Year Borrower Fee

Historical fees:

Year           Borrower Fee

2000                  0.600

2001                  0.472

2002                  0.410

2003                  0.425

2004                  0.393

2005                  0.288