SBA 504 Prepayment Penalty Calculator (10-9-8-7-6-5-4-3-2-1 Calculation)

How do you calculate the prepayment penalty for an SBA 504 program?

To calculate the prepayment penalty of an SBA 504 commercial loan (known as "10-9-8-7-6-5-4-3-2-1 Calculation"), multiply the remaining balance of the 504 loan with the interest rate stated on the bond (Note: this is the debenture rate, not the effective rate). Then multiply the resulting number with the factor set forth below for the applicable year.

Penalty = Remaining Principle (Debenture Interest Rate x *Factor)

*To find out the factor value, choose the applicable year of the Factor field in the calculator below.

Note: Enter numbers only, the system will format the fields for you.

SBA Remaining Balance

$

SBA Debenture Rate

%

Factor

Choose One Year 1 (1.00) Year 2 (0.9) Year 3 (0.8) Year 4 (0.7) Year 5 (0.6) Year 6 (0.5) Year 7 (0.4) Year 8 (0.3) Year 9 (0.2) Year 10 (0.1)

SBA Prepayment Penalty