WELLS FARGO BANK, N.A.
Small Business Administration Lending
                 
SBA 7A vs. SBA 504 Comparison vs. Conventional Fixed
SBA 7(a) loan scenario   SBA 504 loan scenario Conventional fixed rate loan scenario
(90% Loan to Value)   (90% Loan to Value) (75% Loan to Value)
             
Project amount: $1,800,000 Project Amount: $1,800,000 Project Amount $1,800,000
           
Loan amount: $1,620,000   Wells Fargo loan amount: $902,340 Loan amount: $1,350,000
Amortized over: 25 yrs   SBA loan amount: $721,872 Amortized over: 20 yrs
Due In: 25 yrs   Amortized: WF 1st DOT 20 yrs Due In: 3 yrs
      Amortized: SBA 2nd 20 yrs    
           
SBA 7(a) interest rate*: 5.250% Wells Fargo interest rate** 5.650% ***3 yrs year interest rate: 5.650%
Variable   SBA 504 interest rate: 5.530%    
    ** repriced every 3yrs fixed      
             
Monthly payment: $9,708 Monthly payment: $11,262 Monthly payment: $9,401
Cash down payment $180,000   Cash down payment $180,000 Cash down payment $450,000
           
Estimated Cost Summary  Estimated Cost Summary  Estimated Cost Summary 
SBA 7(a):     Wells Fargo & SBA:      Wells Fargo :  
Guaranty Fee $0 Wells Fargo loan fee $9,023 Loan Fee   $13,500
Other Fees/Credits $0   CDC preparation fee $0 Other Fees/Credits $0
Packaging Fee $1,000   SBA 504 loan CDC fee $4,680    
             
Out of pocket costs:     Out of pocket costs:   Out of pocket costs:  
Title Insurance $1,000   Title Insurance $1,000 Title Insurance $1,000
Appraisal $3,500   Appraisal $3,500 Appraisal $3,500
Environmental $1,500   Environmental $1,500 Environmental $1,500
Survey, if necessary $0   Survey, if necessary $0 Survey, if necessary $0
Filing/Misc. $500   Filing/Misc $500 Filing/Misc $500
      Legal $2,500    
Total Fees: $7,500 Total Fees: $22,703 Total Fees: $20,000
           
Cash out-of-pocket $187,500 Cash out-of-pocket $202,703 Cash out-of-pocket $470,000
SBA 7(a) Loan Specifics: SBA 7(a) Loan Specifics: Conventional Loan Specifics:
10 % Down Payment   10% Down Payment 25% Down Payment
25 Year Amortization   Longer fixed rate options [20/20] Longer fixed rate options
No Balloon Payment   Balloon Payment Options Available Balloon Payment Options Available
Limited Prepayment Penalty   Prepayment Penalties Apply Prepayment Penalties Apply
Close in 30 - 45 days   Close in 60 - 90 days Close in 30 - 45 days
Fees can be financed   Fees can be financed One Loan Closing
MUCH easier process - 1 lender vs. 2   Two Loan Closings
 
 
· A Bank loan commitment will only be offered subject to applicant meeting all SBA and/or Bank conditions and requirements.  
 
· The above figures are for information purposes only and are subject to change.