The SRF Federal program charges a closing fee on its loans. How is that fee accessed and when is that fee paid?

The 2% closing fee on SRF Federal loans is based the loan amount in the loan agreement regardless of the amount of the loan that is eventually used. For example, if the loan recipient signs a loan agreement in the amount of $1,000,000, a 2% closing fee of $20,000 is paid regardless if only $700,000 of the loan is used. This fee is billed in 12 equal monthly amount beginning after the loan agreement is executed by GEFA.

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