Sample Project A 504 Loan has three participants: Bank Financing, 504 Loan, and Company Injection. Following is a breakdown of a sample 504 Project:

Uses of Proceeds:
LAND COSTS BUILDING COSTS EQUIPMENT COSTS TOTAL USES OF PROCEEDS	$  200,000 $  500.000 $  300,000 $1,000,000

 

Sources of Funds:
FIRST MORTGAGE LENDER (50%) NET 504 LOAN PROCEEDS (40%) BUSINESS INJECTION (10%) TOTAL SOURCES OF PROCEEDS	$  500,000 $  400,000 $  100,000 $1,000,000

 

504 Loan Pricing:
NET 504 LOAN PROCEEDS FUNDING FEE (0.25% OF NET) PROCESSING FEE (1.5% OF NET) LEGAL CLOSING FEES UNDERWRITER FEES (0.4% OF $413,000) ROUNDING TO NEXT $1,000 (TO BORROWER) 504 FINANCED FEES GROSS 504 LOAN	$400,000 $1,000 $6,000 $3,500 $1,652 $848 $  13,000 $413,000

 

Total 504 Loan Fees:
BANK FEE (0.5% OF FML LOAN) 504 FINANCED FEES 504 OUT-OF-POCKET FEES (EST.) TOTAL 504 LOAN FEES	$  3,125 $13,000 $  1,875 $18,000