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SBA 504 Rates
SBA 504 January Effective Rate Falls To 6.39%
The 20-year 504 rates announced for January are:
Effective Rate: 6.39%
First Five Years:
6.28%
Note Rate: 5.28%
Debenture Rate:
5.21%
The 10-year 504 rates are:
Effective Rate: 6.60%
Note Rate: 5.28%
Debenture Rate: 5.10%
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| FFCFC Closes Largest 504 Ever in Florida |
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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 [ed. 12/8/04]. The maximum size of guaranteed loans available to manufacturing businesses under the SBA 504 loan program was increased to $4 million from $1 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 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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| Check the S.O.P: 504 Q&A |
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Q – How does the 504 Loan work for franchises?
A - For franchise businesses, the franchise agreement must be reviewed and approved by SBA. There may be a simplified pre-approval of the franchise agreement if the franchise appears in the Official Franchise Registry. The Registry lists names of franchisors whose franchisees enjoy the benefits of a streamlined review process for SBA loan applications. If a “certificate of no-change” is submitted, loan applications for registered franchisors can be reviewed and processed very quickly. Through use of the Franchise Registry, small business franchisees get better service and quicker loans.
The Franchise Registry may be accessed at
Read the answer... » »
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| SBA Hurricane Loans Eceed $2 Billion, $1 Billion in December |
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In less than 30 days, the U.S. Small Business Administration has approved another $1 billion in long-term disaster loans to the victims of the three hurricanes this fall.
In total, the SBA has now approved more than $2 billion in disaster relief funds to assist those affected by the devastating hurricanes that struck the Gulf Coast and Florida. The SBA is currently averaging more than $36 million in loan approvals a day in December to the small businesses and homeowners who need assistance. Loan approvals reached the $2 billion mark Friday, December 30th.
“This massive effort is showing month-by-month, week-by-week and day-by-day the kinds of historic results we’ve expected all along in bringing long-term relief to affected homeowners and small businesses,” said SBA Administrator Hector V. Barreto. “Despite the substantial hurdles caused by the damage and dislocation of these storms, the SBA and its workforce continue to approve disaster loans at a record pace.
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