• Pre-Payment Guidelines

  • Lakeshore 504 will provide a prepayment estimate upon request. Prepayments must be made by the close of business on the established prepayment date. Please contact Doug Kuipers at (616) 392-9633 for more information on paying off your existing loan.

    SBA requires written notice (through Lakeshore 504) from the borrower at least 30 days in advance.  Written notice can be emailed to the attention of Doug Kuiper dkuiper@lakeshore504.org and should include:

    •     The month and date of the 3rd Thursday you wish to payoff
    •     The loan number(s) and property address
    •     The borrower contact and fax number
    •     If a bank or escrow company will be handling the payoff, list their contact information
    •     Letter must be dated and signed by the borrower


    Final prepayment figures are provided by the Central Servicing Agent approximately three days prior to the prepayment date for 504 loans.

    Prepayment Premiums - 504 loan

    The premium is based on a declining scale over the first half of the loan.  The premium is adjusted every six months concurrent with the semi-annual debenture payments based on the balance of the loan at the six month intervals.  On a 20-year debenture, the premium in the first six months would be the annual interest on the beginning balance of the loan.  In the sixth month, the premium would be adjusted to the annual interest on the balance as of the sixth month.  In the second year, the premium would be 90% of the annual interest based on the loan balance at the beginning of the second year.  The premium would be recalculated in six months.  In the third year, the premium would be 80% of the balance at the beginning of the third year, adjusted at six months.  The premium declines in this manner over the ten-year period so that in the tenth year, the premium is 10% of the annual interest.

  • February Interest Rates

    20 Year Loan Rate - 4.60%

    10 Year Loan Rate - 4.59%