Effective for all loans where the applications were received by the lender on or after December 22, 2000, a new prepayment charge paid by the borrower to SBA ("subsidy recoupment fee") has been added for those loans that meet the following criteria:

• have a maturity of 15 years or more where the borrower is prepaying voluntarily;
• the prepayment amount exceeds 25 percent of the outstanding balance of the loan; AND
• the prepayment is made within the first 3 years after the date of the first disbursement (not approval) of the loan proceeds.

The prepayment fee calculation is as follows:

• during the first year after disbursement, 5 percent of the amount of the prepayment;
• during the second year after disbursement, 3 percent of the amount of the prepayment; or
• during the third year after disbursement, 1 percent of the amount of the prepayment.