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.

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


Note: The commercial mortgage calculators displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any calculation errors resulting from the use of these calculators.