An SBA 504 loan can be prepaid on the third Thursday of each month. If the loan is paid off during the first half of its term, a prepayment penalty applies based on the debenture rate set when the loan was priced and funded. The penalty starts at the full debenture rate in the first year and gradually decreases each year until it reaches zero in the second half of the term, when prepayment becomes penalty-free. If you’re considering prepaying your SBA 504 loan, contact us, and we’ll guide you through the process with ease.
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