Whether You’re Purchasing New or Used Machinery & Equipment, We Can Help Your Small Business Grow.
Many small businesses and manufacturers don’t know this, but heavy duty fixed machinery and equipment can be financed under the SBA 504 Loan Program either as a stand alone project or as part of a real estate transaction. Other than justifying economic lifespan, a 504 equipment loan is no different than a regular 504 loan.
Benefits of a 504 Machinery & Equipment 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 are available (based on useful life declaration from manufacturer or appraiser).
- 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
- Purchase of new or used long-life machinery and equipment (must be fixed – no rolling stock).
- Installation of new or used long-life machinery and equipment.
- Examples include heavy and highly calibrated machines, manufacturing equipment, printing equipment, commercial laundry equipment and equipment that generates renewable energy or fuels, just to name a few. Contact Florida First Capital for specific details.
- 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.
Regular 504 loan proceeds may not be used to finance working capital.