FFCFC Closes Largest 504 Ever in Florida

Florida First Capital has just closed the largest SBA 504 ever made in Florida, part of a project totaling $28 million.

“SBA data show that this is the largest 504 loan ever authorized or closed in the State of Florida, and appears to be one of the largest 504 projects ever done in the U.S.” said Todd G. Kocourek, President and CEO of FFCFC.

The borrower was Rose’s Southeast Paper and the 504 financing allowed the company to purchase the assets of an existing paper mill located in Sanford, Florida. Rose’s is a paper manufacturer which produces napkins, kitchen towels, toilet tissue and paper bags to the food service industry and other commercial companies with large demand for paper.

Rose’s 504 loan could not have been accomplished without the expertise and assistance of FFCFC, a statement borne out by the fact that another Florida CDC consulted by one of the competing banks advised that the 504 could not be done. With FFCFC’s help, Rose’s was able to take advantage of the new $4 million maximum on SBA guaranteed debentures to manufacturers and conserve a considerable amount of cash and working capital. The bank that informed Rose’s that the 504 was not possible was dropped from further consideration in the $28 million deal.

As reported in the December 2004 FFCFC Lender Update, “ Florida manufacturers received a real boost from the Omnibus Appropriations Act passed by Congress last week [12/8/04:ed.]. The maximum size of guaranteed loans available to manufacturing businesses under the SBA 504 loan program was increased to $4 million from $1.3 million – an increase of 300%.”

Kocourek said at the time, “This is double the amount now available to other small businesses and emphasizes the importance placed on the growth and development of our country’s small manufacturing companies.”

FFCFC is one of the top small business lenders in the country and has been active in 504 lending since 1984. The program has always offered small business owners access to 90% financing with below market, fixed rates and 10 or 20 year terms for the purchase, construction or renovation of owner-occupied commercial real estate or the purchase of heavy equipment and this increased loan size now makes these benefits much more widely available to manufacturers.

Florida First Capital is actively seeking manufacturing businesses with plans to renovate, expand or purchase heavy equipment. For more information, call FFCFC at 888-320-5505 or at 850-681-3601.

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