Your Small Business Has Big Plans. We Offer Smarter Financing to Help You Achieve Your Growth and Expansion Goals.
You specialize in small business, we specialize in small business financing. With almost 30 years’ experience in the SBA 504 Loan industry, Florida First Capital understands the challenges unique to small businesses. We’re not only easy to work with, we’re extremely knowledgeable and well-equipped to help you achieve your goals and stay pointed in the right direction.
Whether you are expanding, remodeling, renovating or converting, with Florida First Capital as your trusted small business lender you’ll spend less time worrying about your loan and more time doing what you do best – running your small business, creating jobs and supporting the economy.
Benefits of a 504 Commercial Real Estate Loan
- Up to 90% financing at below-market, fixed interest rates – No future interest rate fluctuations.
- Low down payment conserves valuable working capital.
- 10- and 20-year amortization terms available.
- Associated fees and soft costs can be financed in the loan minimizing out-of-pocket costs.
- Projects from $125,000 to $20 million.
- Veteran-owned small businesses are eligible to receive up to $30,500 in fee discounts on 504 loans under our VetLoan Advantage Program. Details here.
Eligible Uses of Proceeds
- Acquisition of land and construction of new building.
- Acquisition of land and existing building.
- Remodel, convert, expand or renovate existing building.
- Leasehold improvements.
- Purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping.
- Debt refinancing with expansion (limited amount).
- Energy efficient “green” projects (use of sustainable design; reduced energy consumption; renewable energy or fuels).
- Franchises work too. If the franchise system is eligible for the 504 Loan Program and is listed with the Franchise Registry, the loan process through the SBA may be expedited.
- Purchase of office furniture, fixtures and equipment.
- Contingency reserve, not to exceed 10% of the construction costs.
- Associated fees and soft costs (architectural and engineering fees, appraisals, environmental investigations, closing costs, etc.).
- Repayment of interim points, fees and interests.
- Costs incurred within nine months prior to the date of the 504 application to the SBA also can be included in the project costs.
Owner Occupancy Requirements
- Existing Buildings – Business must occupy at least 51% of the project within one year of ownership.
- New Construction – Business must occupy at least 60% of project upon occupancy and 80% within 10 years.
- The borrower may form a real estate holding company that leases 100% to the operating business, which then subleases surplus space (up to 49%).
Regular 504 loan proceeds may not be used to finance working capital.