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504 Loan Rates and Fees

Rates

Interest charged on the 504 portion of the loan is determined by the current rate on 10-year treasury issues.

The rate at the time of the sale of the debenture is fixed for 10 or 20 years. Private lenders charge a going rate (fixed or variable) for their portion of the loan. Maturities are tied to the 504 portion of the loan and must be at least seven years.

  • 10 Year 504 Loan ~ Heavy Machinery and Equipment
  • 20 Year 504 Loan ~ Land and Building

Fees

The following statutory origination fees are added to the proceeds amount provided by Alacom Finance and funded through the 504 Loan:

Monthly servicing fees paid by the borrower totaling 1% per annum to Alacom Finance. Smaller and/or rural loans may be charged higher fees for extraordinary servicing. Legal fees and closing costs can be financed through the loan.