Wells Fargo Bank, N.A. -- SBA Lending SBA 7A vs. SBA 504 ...

Wells Fargo Bank, N.A. -- SBA Lending

Aaron Riutta, SBA Business Development Officer Phone Number: 360-533-9596 Email Address: aaron.s.riutta@

SBA 7A vs. SBA 504 vs. Conventional Comparison

SBA 7(a) Loan Scenario

SBA 504 Loan Scenario

Conventional Loan Scenario

Loan amount: Loan Term: Loan Amortization:

$1,152,276 25 yrs 25 yrs

Wells Fargo 1st DOT: CDC 2nd DOT:

Loan Term / Amortization (WF): Loan Term / Amortization (CDC):

$625,000 $513,250

25 yrs / 25 yrs 20 yrs / 20 yrs

Loan amount: Loan Term: Loan Amortization:

$937,500 10 yrs 20 yrs

SBA 7(a) Interest Rate:* * Fixed For 25 Years

5.50%

Interest Rate (WF):* Interest Rate (CDC): Blended Interest Rate: * Fixed For 25 Years

5.50% 4.54% 5.07%

Interest Rate:* * Fixed For 10 Years

4.50%

Monthly Payment:

Breakdown of Project Costs

$7,076 Monthly Payment:

$7,096 Monthly Payment:

Breakdown of Project Costs

Breakdown of Project Costs

$5,931

Project Cost

Out of Pocket

Total Cost

Cost

$1,250,000

$125,000 Project Cost

Out of Total Cost Pocket Cost

$1,250,000 $125,000 Project Cost

Out of Pocket

Total Cost

Cost

$1,250,000 $312,500

SBA 7(a) Guaranty Fee

$30,306

Third Party Related Costs

$8,000

Total Project Costs

$1,288,306

Out of Pocket Cost as % of Total Project

$3,031 Debenture Fees Bank Loan Fee

$15,750 $3,125

$2,500 $3,125 Bank Loan Fee

$4,688

$8,000 Third Party Related Costs

$8,000

$8,000 Third Party Related Costs

$8,000

$136,031 Total Project Costs

$1,276,875 $138,625 Total Project Costs

$1,262,688

10.6% Out of Pocket Cost as % of Total Project

10.9% Out of Pocket Cost as % of Total Project

$4,688 $8,000 $325,188

25.8%

SBA 7(a) Loan Specifics:

SBA 504 Loan Specifics:

Conventional Loan Specifics:

Finance Up To 90% of Total Project Costs Longer Fixed Rate Options No Balloon Payment Limited Prepayment Penalty

Most Loans Close In 30-45 Days Third Party Costs Can Be Financed

One Loan Closing

Finance Up To 90% of Total Project Costs Longer Fixed Rate Options No Balloon Payment (1) Prepayment Penalties Apply

Most Loans Close In 45-60 Days Most Third Party Costs Can Be Financed

Two Loan Closings With 2 Lenders

Finance Up To 75% of Appraised Value Fixed Rate Options Up To 15 Years Balloon Payment Possible Prepayment Penalties Apply Most Loans Close In 30-45 Days

Most Third Party Related Costs Can NOT Be Financed One Loan Closing

(1) The Wells Fargo portion of a 504 loan may have a balloon payment if a non fully amortizing loan term is requested

This is not an offer or commitment to lend and is intended for discussion purposes only. All financing is subject to credit approval and determination of SBA eligibility by the Wells Fargo SBA Lending group and additional collateral may be required. The amounts provided are estimations and the actual fees, costs and monthly payment will vary depending on your specific loan transaction. The interest rate is dependent on the Wall Street Journal Prime and is subject to change.

Prepared for: Ryan Davenport

September 12, 2017

? 2017 Wells Fargo Bank, N.A. All rights reserved.

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