Common use of Loan Processing Fee Clause in Contracts

Loan Processing Fee. In accordance with SBA regulations, CDC will charge a processing fee equal to 1.5% of the net proceeds of the SBA 504 loan proceeds. Applicant agrees to pay, as a deposit, a portion of the Loan Processing Fee at the time applicant signs this agreement and a 504 Loan Application File is opened. The deposit is based on the following schedule: CDC/SBA Loan Amount: $50,000 – 250,000 $250,000 + Deposit Amount: 1% ($500 – 2,500) $2,500 If CDC or SBA declines the application, the deposit will be refunded in full within 10 business days after the decline, including any period for reconsideration. If Applicant chooses to terminate this agreement, for any reason, CDC shall deduct the reasonable and necessary costs incurred in the application and/or approval process. After deducting all hard costs incurred by the CDC, any remaining deposit balance will be refunded to the applicant within 10 business days, according to the following schedule: Pre-loan analysis, initial credit review and determination of eligibility 75% of deposit refunded Review and preparation of checklists for documentation needed to complete Application 50% of deposit refunded Completion of credit underwriting and preparation of credit memo 25% of deposit refunded Presentation of loan to Utah CDC Loan Committee 0% of deposit refunded If the Final 504 Loan Package is approved and Applicant obtains 504 Loan financing, the total 504 Loan Processing Fee will be financed with the 504 Loan Proceeds, and the deposit paid by Applicant will be refunded to Applicant upon 504 Loan funding.