The first mortgage must have a term of at least 10 years when the 504 loan is for 20 or 25 years; and at least 7 years when the 504 loan is for 10 years. Interest rates and fees must be considered reasonable. The lender loan cannot have an early-call feature or contain any demand provisions unless the loan is in default. The lender loan must not be open-ended. The bank will also charge a 0.50% third-partly lender participation fee on their loan, which is paid to SBA prior to the SBA loan closing.