SBA 504 prepayment penalty vanishes after 10 years for 20 and 25-year debentures. Additionally, it disappears after 5 years for 10-year debentures
The prepayment penalty also reduces each year. As time progresses, the obstacles to refinancing become less significant. In the event interest rates decline, borrowers can refinance the 504 note either through conventional means or by opting for a new 504 note at a more favorable rate.
The SBA 504 program enables you to serve your current clients while also obtaining new prospects. Through this program, you can enhance your commercial financial portfolio, positioning your institution as an innovative and strategic partner for your clients.
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