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Major Revision of 504 Temporary Debt Refinancing Program
Thursday, Oct. 6, 2011 -- Florida First Capital has just learned the Small Business Administration (SBA) is expected to publish a major revision to the current 504 temporary debt refinancing regulations on Tuesday, Oct. 11, 2011. These will be the expected program enhancements that should make this critical program much more useful to many small businesses seeking to refinance their debt or obtain today's extraordinary 504 rates.
While many details will be provided in forthcoming SBA notices and/or regulations, here are general comments on the program enhancements and highlights:
Amount of Third Party Loan and 504 Loan
The Third Party Loan and 504 Loan will no longer be limited to the outstanding principal balance of the debt being refinanced. This will allow excess equity to be used for the financing of Eligible Business Expenses.
Minimum Amount of Third Party Loan
The Third Party Loan will no longer be based on 50% of the appraised value. Instead, the project will be based on actual costs and the financing structure will be the same as the regular 504 program.
Funding of Business Expenses
The SBA will now permit borrowing to fund approved and reasonable business expenses if the Borrower has sufficient equity (based on a 90% LTV) in excess of the amount to pay off the Qualified Debt.
Eligible Business Expenses
Such expenses may include rent, utilities, inventory or other business obligations. Eligible Business Expenses means expenses incurred, but not paid, prior to the date of the 504 loan application that will come due within 18 months of that date. Estimates of these expenses are required with the application.
Business Expenses Verification
Borrowers must be able to substantiate how the Business Expenses were paid. Evidence may include bank statements, cleared checks, or paid invoices.
Random Business Expense Use of Proceeds Audits
The SBA will conduct random audits on the use of proceeds for Eligible Business Expenses. Certifications by both the Borrower and the Certified Development Company (CDC) will be required for projects involving such payments.
Qualified Debt Criteria
The debt to be refinanced may qualify if the loan that originally financed the Eligible Fixed Assets satisfies the 85/15% use of proceeds test AND the Borrower and CDC provide the debt and lien instruments for the current loan being refinanced. This will significantly reduce the documentation requirements or "genealogy" of the loan when there has been previous refinancing(s).
Use of Interim Lender or Escrow Account
If the loan being refinanced is Same Institution Debt, then either an escrow account or an Interim Lender may be used. If the loan is not Same Institution Debt, an Interim Lender must be used.
Florida First Capital will provide more details as soon as they become available about these exciting and long awaited changes. Stay tuned!
Source: NADCO
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FFCFC 504 Program Highlights
* Up to 90% commercial financing.
* Below market, fixed interest rates -- No ARMS.
* Amortization terms up to 20 years.
* Associated fees and soft costs may be financed in the loan.
* SBA loan amounts up to $5.5 million.
* No limit on overall project size. |
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Eligible Use of 504 Loan Proceeds
* Buy land and construct new building.
* Buy land and existing building.
* Remodel, convert, expand or renovate existing building.
* Purchase and install long-life machinery and equipment.
* Business debt refinancing.
* Purchase of furniture, fixtures and equipment. |
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CONTACT AN FFCFC LOAN OFFICER
Northwest & Florida Panhandle Northeast Florida
James Hosman. Phone: 850.393.0496 Kristen Tackett. Phone: 904.861.2270
Central Florida Tampa/St. Petersburg Area
John Hanrahan. Phone: 407.276.4961 Deborah Petrell. Phone: 561.756.1745
Southwest Florida Southeast Florida
Loretta Mathushek. Phone: 239.877.4794 Dana Albury. Phone: 561.400.2084
South Florida Sales & Marketing Manager
Carlos Calero. Phone: 786.229.4688 Deborah Petrell. Phone: 561.756.1745
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 ABOUT FLORIDA FIRST CAPITAL
Florida First Capital is a statewide, nonprofit, federally regulated certified development company which administers the 504 loan program on behalf of the Small Business Administration. Since 1983, Florida First Capital has helped thousands of small business owners grow and expand by ensuring they have access to available and affordable capital. Our highly trained and vastly experienced staff of loan officers and underwriting, closing and servicing professionals ensures the best and most complete service the 504 industry has to offer.
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Florida First Capital Receives Approval for First 504 Refinance Deal in Florida
 Friday, May 6, 2011 -- Florida First Capital Finance Corporation (FFCFC) is pleased to announce it has received approval from the Small Business Administration (SBA) for the first 504 debt refinance deal done in Florida.
FFCFC worked with lending partner Community Bank of Florida on the $2.6 million deal for the Lazy Days Restaurant in Islamorada, Florida.
The loan proceeds will be used by the borrowers to refinance two outstanding mortgages on their restaurant location, which includes two buildings with a total of 4,917 square feet situated on a 33,725 square foot lot.
The refinance loan proceeds will also be used to cover professional fees and interim points and costs so that the borrowers can reduce their cash outlay, thus helping to preserve working capital.
About the 504 Debt Refinance Program
The 504 debt refinance program allows small business owners with eligible commercial real estate (CRE) mortgages to take advantage of stable and long-term 504 financing and thus avoid potential foreclosure on CRE mortgages approved before and during the recession that were based on inflated real estate values.
With a large percentage of CRE mortgages set to mature within the next few years, commercial lenders can take advantage of the program as well by removing a percentage of those existing CRE mortgages from their books and freeing up capital they can use to make more small business loans.
The 504 refinancing program, authorized under the Small Business Jobs Act of 2010, is in effect through Sept. 27, 2012.
Refinance Program Guidelines
* Borrowers are able to refinance up to 90% of the current appraised property value or 100% of the outstanding mortgage, whichever is lower, plus eligible refinancing costs.
* Loan proceeds may not be used for other business expenses. Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.
* To be eligible a business must have been in operation for at least two years; the debt to be refinanced must be for owner-occupied real estate and have been incurred no less than two years prior to the date of application; and the proceeds used for 504-eligible business expenses, and payments on that debt must be current for the last 12 months.
* Total of first and second mortgages on refinance will be 90% and structured as follows: third party lender 50%; FFCFC/SBA 40%; and borrower 10% equity injection.
* In addition to a cash contribution, the borrower's 10% contribution may be satisfied by its equity in the eligible fixed asset (the 504 project) serving as collateral for the refinancing project or by the equity in any other fixed assets that are acceptable to the SBA as collateral.
* The 504 refinance program does not provide for any cash out.
Download a 504 Refinance Program Information Sheet (pdf).
For more information about 504 loans in Florida, contact Florida First Capital by visiting www.ffcfc.com, emailing us info@ffcfc.com at or calling 888.320.5504.
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FFCFC 504 Program Highlights
* Up to 90% commercial financing.
* Below market, fixed interest rates -- No ARMS.
* Amortization terms up to 20 years.
* Associated fees and soft costs may be financed in the loan.
* SBA loan amounts up to $5.5 million.
* No limit on overall project size.
Download a 504 Quick Reference Guide (pdf). |
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Eligible Use of 504 Loan Proceeds
* Buy land and construct new building.
* Buy land and existing building.
* Remodel, convert, expand or renovate existing building.
* Purchase and install long-life machinery and equipment.
* Business debt refinancing.
* Purchase of furniture, fixtures and equipment. |
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CONTACT AN FFCFC LOAN OFFICER
Northwest & Florida Panhandle Northeast Florida
James Hosman. Phone: 850.393.0496 Kristen Tackett. Phone: 904.861.2270
Central Florida Tampa/St. Petersburg Area
John Hanrahan. Phone: 407.276.4961 Ron Mirenda. Phone: 727.871.8033
Southwest Florida Southeast Florida
Loretta Mathushek. Phone: 239.877.4794 Dana Albury. Phone: 561.400.2084
South Florida Sales & Marketing Manager
Carlos Calero. Phone: 786.229.4688 Deborah Petrell. Phone: 561.756.1745
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ABOUT FLORIDA FIRST CAPITAL
Florida First Capital is a statewide, nonprofit, federally regulated certified development company which administers the 504 loan program on behalf of the Small Business Administration. Since 1983, Florida First Capital has helped thousands of small business owners grow and expand by ensuring they have access to available and affordable capital. Our highly trained and vastly experienced staff of loan officers and underwriting, closing and servicing professionals ensures the best and most complete service the 504 industry has to offer.
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BREAKING NEWS: SBA Eliminates Date Restriction for 504 Refinance Program
Tuesday, March 29, 2011 -- Small business owners with eligible commercial real estate mortgages maturing after Dec. 31, 2012, will be able to secure more stable, long-term financing through the Small Business Administration's (SBA) temporary 504 refinancing program as a result of a change that will be published in The Federal Register by April 6.
In February the SBA implemented a temporary refinancing program enacted under the Small Business Jobs Act of 2010, which allowed small businesses facing maturing commercial real estate mortgages or balloon payments before Dec. 31, 2012, to refinance with an SBA 504 loan.
The SBA change will lift the date limitation and will allow more small businesses to secure stable, long-term financing and avoid potential foreclosure on mortgages approved before and during the recession that were based on inflated real estate values.
With publication in The Federal Register, which is expected by April 6, the SBA will begin accepting applications from small business owners with mortgages maturing after Dec. 31, 2012.
The 504 refinancing program will be in effect through Sept. 27, 2012.
Refi Program Guidelines:
* Borrowers are able to refinance up to 90% of the current appraised property value or 100% of the outstanding mortgage, whichever is lower, plus eligible refinancing costs.
* Loan proceeds may not be used for other business expenses. Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.
* To be eligible a business must have been in operation for at least two years; the debt to be refinanced must be for owner-occupied real estate and have been incurred no less than two years prior to the date of application; and the proceeds used for 504-eligible business expenses, and payments on that debt must be current for the last 12 months.
* Total of first and second mortgages on refinance will be 90% and structured as follows: third party lender 50%; FFCFC/SBA 40%; and borrower 10% equity injection.
* In addition to a cash contribution, the borrower's 10% contribution may be satisfied by its equity in the eligible fixed asset (the 504 project) serving as collateral for the refinancing project or by the equity in any other fixed assets that are acceptable to the SBA as collateral.
* The refi program does not provide for any cash out.
For more information, contact a Florida First Capital Loan Officer listed below, email us at info@ffcfc.com or call us at 888-320.5504.
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504 PROGRAM HIGHLIGHTS
* Up to 90% commercial financing.
* Below market, true fixed interest rates.
* Amortization terms up to 20 years.
* Loan amounts up to $5.5 million (SBA portion
only; no limit on overall project dollar size).
* Alternative size standard now makes more small
businesses eligible for 504 financing. |
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ELIGIBLE USE OF 504 PROCEEDS
* Buy land and construct new building.
* Buy land and existing building.
* Remodel, convert, expand or renovate existing building.
* Leasehold improvements.
* Debt refinancing without business expansion.
* Green initiative projects.
* Purchase of long-life machinery and equipment. |
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CONTACT AN FFCFC LOAN OFFICER
Northwest & Florida Panhandle Northeast Florida
James Hosman. Phone: 850.393.0496 Kristen Tackett. Phone: 904.861.2270
Central Florida Tampa/St. Petersburg Area
John Hanrahan. Phone: 407.276.4961 Ron Mirenda. Phone: 727.871.8033
Southwest Florida Southeast Florida
Loretta Mathushek. Phone: 239.877.4794 Dana Albury. Phone: 561.400.2084
South Florida Sales & Marketing Manager
Carlos Calero. Phone: 786.229.4688 Deborah Petrell. Phone: 561.756.1745
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ABOUT FLORIDA FIRST CAPITAL
FFCFC is the state's largest non-profit certified development company that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide available and affordable financing to small businesses. FFCFC lends under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs. |
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SBA 504 Refinance is HERE!
Wednesday, Feb 16, 2011 -- The Small Business Administration (SBA) today released eligibility rules for the new 504 Debt Refinance Program.
This is phase 1 of a 2 phase program, intended to immediately address loans maturing on or before Dec. 31, 2012. At a later date, the SBA may allow other balloons, as well as loans that can demonstrate strong needs in other ways.
Here are the highlights:
- Amount of loan to be refinanced must include at least 85% eligible 504 project costs.
- Total of 1st and 2nd mortgage on new refinance 504 will be 90% and structured as follows: Bank 50%, Certified Development Company 40% and Borrower equity 10%.
- No refinance of loans already part of existing 504 project.
- Loan to be refinanced must be current for last 12 months.
- Debt must have been incurred not less than 2 years prior to the date application is received by the SBA.
- Small business must have been in business for 2 years prior to submission of application.
- Debt refinance of a bank's own debt cannot be sold through the First Mortgage 504 Loan Pooling program.
For more information, contact a Florida First Capital Loan Officer listed below, email us at info@ffcfc.com or call us at 888-320.5504.
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504 PROGRAM HIGHLIGHTS
* Up to 90% commercial financing.
* Below market, true fixed interest rates.
* Amortization terms up to 20 years.
* Loan amounts up to $5.5 million (SBA portion
only; no limit on overall project dollar size).
* Alternative size standard now makes more small
businesses eligible for 504 financing. |
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ELIGIBLE USE OF 504 PROCEEDS
* Buy land and construct new building.
* Buy land and existing building.
* Remodel, convert, expand or renovate existing building.
* Leasehold improvements.
* Debt refinancing without business expansion.
* Green initiative projects.
* Purchase of long-life machinery and equipment.
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CONTACT AN FFCFC LOAN OFFICER
Northwest & Florida Panhandle Northeast Florida
James Hosman. Phone: 850.393.0496 Kristen Tackett. Phone: 904.861.2270
Central Florida Tampa/St. Petersburg Area
John Hanrahan. Phone: 407.276.4961 Ron Mirenda. Phone: 727.871.8033
Southwest Florida Southeast Florida
Loretta Mathushek. Phone: 239.877.4794 Dana Albury. Phone: 561.400.2084
South Florida
Carlos Calero. Phone: 786.229.4688
Sales & Marketing Manager
Deborah Petrell. Phone: 561.756.1745
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ABOUT FLORIDA FIRST CAPITAL
FFCFC is the state's largest non-profit certified development company that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide available and affordable financing to small businesses. FFCFC lends under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs. |
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Extension for 504 Fee Waivers in the Works
The Small Business Jobs Act of 2010 (HR 5297) extended the temporary elimination of both the bank participation fee of 0.5% and the certified development company processing fee of 1.5% on 504 loans until Dec. 31, 2010, or until the appropriation funds are exhausted. This deadline is fast approaching. Presently, a Continuing Resolution (CR) has passed the House that contains language to extend the 504 program fee waivers beyond Dec. 31 (a CR keeps the Federal government funded and open when appropriations bills have not been completed). We are tracking this CR and will keep you advised of its passage or modification by the Senate.
According to the Small Business Administration (SBA), there is sufficient funding to last through the current end of this fee relief program on Dec. 31. If Congress does not extend the fee relief beyond the current expiration date of Dec. 31, the fee waivers will cease for all 504 projects not authorized by the SBA on or before Friday, Dec. 31. If you have questions regarding the fee relief or status of a loan, please contact your FFCFC loan officer or call 888.320.5504. Email: info@ffcfc.com. |
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504 PROGRAM HIGHLIGHTS * Up to 90% commercial financing.* Below market, true fixed interest rates.
* Amortization terms up to 20 years.
* Loan amounts up to $5.5 million (SBA portion
only; no limit on overall project dollar size).
* Revised alternative size standard now makes more small
businesses eligible for 504 financing.
* Associated fees and soft costs may be financed in the loan.
* Loans are assumable by qualified, acquiring businesses. |
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ELIGIBLE USE OF 504 PROCEEDS * Buy land and construct new building.
* Buy land and existing building.
* Remodel, convert, expand or renovate existing building.
* Leasehold improvements.
* Debt refinancing without business expansion.
* Green initiative projects.
* Purchase of long-life machinery and equipment.
* Purchase of furniture, fixtures and equipment.
* Repayment of interim points, fees and interests. |
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CONTACT AN FFCFC LOAN OFFICER
Northwest & Florida Panhandle Northeast Florida
James Hosman. Phone: 850.393.0496 Kristen Tackett. Phone: 904.861.2270
Central Florida Tampa/St. Petersburg Area
John Hanrahan. Phone: 407.276.4961 Ron Mirenda. Phone: 727.871.8033
Southwest Florida Southeast Florida
Loretta Mathushek. Phone: 239.877.4794 Dana Albury. Phone: 561.400.2084
South Florida
Carlos Calero. Phone: 786.229.4688
Sales & Marketing Manager
Deborah Petrell. Phone: 561.756.1745
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ABOUT FLORIDA FIRST CAPITAL
FFCFC is the state's largest non-profit certified development company that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide available and affordable financing to small businesses. FFCFC lends under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs. |
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Jobs and Credit Act (HR 5297) Provides Key Changes for 504 Loan Program
A number of very substantial benefits for America's small businesses were incorporated into the Small Business Jobs and Credit Act of 2010 (HR 5297), recently enacted into law.
As a result of the act, many more small business owners across the country now qualify to receive Small Business Administration (SBA) 504 loans. The net worth for companies to be eligible for a 504 loan was increased, maximum loan size was raised, program fee waivers were continued and refinancing of existing debt was also approved.
Here is a synopsis of the changes:
- Fee Reductions -- Continues the temporary elimination of both the 504 bank participation fee of 0.5% and the certified development company (CDC) processing fee of 1.5% through Dec. 31, 2010, or until the appropriation funds are exhausted. The fee waiver, which saves borrowers thousands of dollars in up-front costs, was first enacted in February 2009 as part of the American Recovery and Reinvestment Recovery Act (ARRA).
- Maximum Loan Amounts -- Permanently increases the loan maximum on 504 loans, including public policy loans, to $5 million; small manufacturer and “green” initiative loans are increased to $5.5 million. This means larger projects are now eligible for 504 loans and borrowers who already have loans with the SBA can now return for additional funding.
- Temporary Alternative Size Standard -- Businesses with a maximum tangible net worth of not more than $15 million and average net income after Federal income taxes (excluding carry-over losses) for the two full fiscal years prior to application of not more than $5 million are now eligible for 504 financing. (Note: The temporary alternative size standard will remain in effect until the SBA publishes a permanent regulation.)
- Debt Refinancing -- Establishes a temporary two-year program of business debt refinancing to be used for refinancing of qualified existing debt without business expansion into long-term, fixed-rate loans through the 504 program. This means small business owners holding commercial real estate loans with undesirable rates will have the opportunity to refinance these loans using the 504 program. This will be a boon for small businesses that are having difficulty keeping current on existing high-interest loans since 504 loans are currently available at very desirable rates.
- 504 First Mortgage Secondary Market Program -- Extends the sunset on the new temporary program for partial SBA guarantees on eligible pools of 504 first mortgages to be sold on the secondary market. The program will expire two years after the date the first pool sale occurs.
Clearly, implementation of Small Business Jobs and Credit Act of 2010 (HR 5297) is a substantial and complex undertaking by the SBA that will require any number of regulation changes and policy notices. It is anticipated the SBA will swiftly implement the fee waivers; other provisions will take some time to implement.
For more information about 504 loans in Florida, contact Florida First Capital by visiting www.ffcfc.com, emailing us at info@ffcfc.com or calling 888.320.5504.
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504 Interest Rates Drop to New Record Low
Tallahassee, Fla. (Sep. 7, 2010) --
For the first time in program history, both the 20-year and 10-year fixed interest rates on Small Business Administration (SBA) 504 loans fell in September to their lowest levels yet.
For small business owners seeking to purchase or enhance commercial property, the current 20-year interest rate is just 4.62%. The previous record was set at 4.86% in October of 2009. Additionally, the current interest rate for a 10-year industrial equipment loan is only 3.68%, edging out the prior record of 4.15% set in November of 2009. Both rates are fixed for the term of the loan with as little as 10% down payment requirements.
504 loans are paired with private-sector commercial loans, providing up to $2 million of small business project financing and up to $4 million for eligible manufacturer projects (SBA loan portions only; there is no limit on the private-sector commercial lenders portion).
“Strong, healthy small businesses may not find a more opportune time than now to invest in and expand for their future, given the emerging opportunities in the commercial real estate market and record low 504 interest rates,” said Todd Kocourek, president and CEO of Florida First Capital Finance Corporation, Florida’s original statewide 504 certified development company.
504 loan proceeds may be used for the purchase of fixed assets only, including the purchase, construction, expansion or renovation of commercial property and/or the acquisition of industrial equipment or other fixed assets that have a useful life span of at least 10 years.
For information on the SBA or State of Florida loans, call 888-320-5504, email info@ffcfc.com or visit www.ffcfc.com.
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FOR IMMEDIATE RELEASE:
Florida First Capital Announces SBA “504” Loan Interest
Rate Falls to Record Low Again This Year
Tallahassee, Fla. (July 12, 2010) – The 20-year fixed interest rate on U.S. Small Business Administration (SBA) “504” loans for the purchase of commercial real estate fell to 5.21% for July, edging out June as the lowest rate for the loan program so far this year.
This is continued good news for small business owners looking to purchase or renovate their existing properties, especially during a time when long-term, affordable small business credit is hard to obtain.
“This is truly an extraordinary time for the 504 loan program and ultimately for borrowers looking to invest in their small business for the long haul,” said Todd Kocourek, president and CEO of Florida First Capital Finance Corporation, Florida’s statewide 504 certified development company. “Credit is readily available and 504 rates continue to fall to some of the lowest levels ever in the program’s 24-year history.”
The 504 interest rate had been at 5.29% in June and 5.52% in May, and reached its peak at 5.79% in January. Last year, 504 interest rates reached historic record lows four times, with the lowest rate ever at 4.86% in October 2009.
SBA 504 loans offer access to low interest, long-term and fixed-rate financing with only 10% down payment requirements for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets.
“Business owners who understand the benefits of owning rather than leasing their space and equipment will recognize there may never be a better opportunity to invest in growing their business,” said Kocourek.
Florida First Capital promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide available and affordable financing to small businesses. Florida First Capital lends under the SBA 504 loan program as well as the Florida Recycling Loan Program and other small business assistance programs. Additionally, Florida First Capital was recently selected by the State of Florida to administer the Deepwater Horizon Oil Spill Florida Small Business Emergency Bridge Loan Program.
For information on SBA or State of Florida loans, call 888-320-5504, email info@ffcfc.com or visit www.ffcfc.com. For information about the Oil Spill Emergency Bridge Loan Program, visit www.floridaoilhelp.com.
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 U.S. SENATE EXTENDS 504 FEE ELIMINATIONS
March 3, 2010 - Small Business Administration (SBA) 504 loan recipients will benefit from the elimination of most up-front program fees for at least another month, thanks to a move yesterday by the U.S. Senate.
The temporary extension, which expires on March 28, eliminates both the bank participation fee of 0.5% and the certified development company (CDC) processing fee of 1.5%.
This is again great news for small business owners looking to purchase owner-occupied commercial real estate and/or long-life machinery and equipment through the 504 loan program. The fee relief will save borrowers approximately $10,000 in upfront, out-of-pocket costs on a typical loan.
A longer extension is currently in the works in Congress as part of the Jobs Bill, which contains an additional $354 million to extend the program fee eliminations through Sept. 30, 2010. That bill also contains provisions that would increase the cap on 504 loans (SBA portion) to $5 million for standard small businesses and $5.5 million for small manufacturing businesses as well as allow for the refinancing of owner-occupied commercial real estate loans under the 504 program.
If the Jobs Bill does not pass by March 28, lenders can expect the SBA to re-activate its Recovery Act Loan Queue, as it has done twice previously. Once this occurs, loans are placed into the queue awaiting the availability of funds.
According to the SBA, program enhancements thus far have accounted for an additional $18.2 billion in lending to more than 40,000 small businesses with small businesses reporting that the provisions will save or create more than 500,000 jobs.
For more information about 504 loans in Florida, contact Florida First Capital by visiting www.ffcfc.com, emailing us at insider@ffcfc.com or calling 888.320.5504.
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504 PROGRAM HIGHLIGHTS
* Up to 90% commercial financing.
* Below market, fixed interest rates.
* Long amortization terms (up to 20 years).
* Loans are assumable by qualified, acquiring businesses.
* Projects from $125,000 to $20 million.
* Temporary elimination of most up-front program fees.
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ELIGIBLE USE OF 504 PROCEEDS
* Buy land and construct new building.
* Buy land and existing building.
* Remodel, convert, expand or renovate existing building.
* Green initiative projects.
* Purchase of long-life machinery and equipment.
* Associated fees and soft costs.
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CONTACT AN FFCFC LOAN OFFICER
Northwest & Florida Panhandle Northeast Florida
Stacy Thorrington. Phone: 850.393.0496 Kristen Tackett. Phone: 904.861.2270
Central Florida Tampa/St. Petersburg
John Hanrahan. Phone: 407.276.4961 Deborah Petrell. Phone: 561.756.1745
Southwest Florida Southeast Florida
Loretta Mathushek. Phone: 239.877.4794 Dana Albury. Phone: 561.400.2084
Southeast Florida South Florida
Bruce Boddie. Phone: 561.289.8410 Carlos Calero. Phone: 786.229.4688
Sales & Marketing Manager
Deborah Petrell. Phone: 561.756.1745
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ABOUT FLORIDA FIRST CAPITAL
FFCFC is the state's largest non-profit certified development company that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide available and affordable financing to small businesses. FFCFC lends under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs.
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Florida First Capital Finance Corporation | 1351 N. Gadsden Street | Tallahassee | FL | 32303
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Florida First Capital Offers All-time Low Interest Rate for
Equipment Loans through SBA "504" Loan Program
Tallahassee, Fla. (Nov. 12, 2009) -- Small business owners and manufacturers who need financing to purchase new or used equipment can turn to the U.S. Small Business Administration's (SBA) "504" loan program and take advantage of historically low rates on its 10-year equipment loan. The current interest rate for a 10-year equipment loan is 4.15 percent for financing up to $2 million ($4 million for manufacturers). These loans are paired with private sector commercial loans to support manufacturing projects of up to $20 million.
To be eligible, the equipment must be fixed and have an economic life of at least 10 years. Examples include heavy and highly calibrated machines, manufacturing equipment, commercial printing and binding machines, and laundry/dry cleaning equipment, to name a few. Rolling stock is not eligible.
“This is the type of program that can help jump start a business in these tough economic times by allowing it to purchase new equipment," said Todd Kocourek, president and CEO of Florida First Capital Finance Corp., Florida’s statewide certified development company. "Small business owners need to be aware that this is available, as these low interest rates may not be seen again for a long time."
SBA “504” loans offer small business owners and manufacturers access to low interest, long-term and fixed-rate financing with only 10 percent down payment requirements for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets.
Florida First Capital Finance Corp. is the state’s largest non-profit certified development company that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide financing to small businesses. Florida First Capital lends to small businesses under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs.
For information on the SBA or State of Florida loans, call 888-320-5504, email info@ffcfc.com or visit www.ffcfc.com.
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| Florida First Capital Finance Corporation October 2009
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BREAKING NEWS
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Obama Supports 150% Increase in Maximum 504 Loan -- to $ 5 Million
Oct. 21, 2009 -- President Obama today announced his support of legislation that will increase the cap on Small Business Administration (SBA) 504 loans to $5 million for standard small businesses and $5.5 million for small manufacturing businesses. 504 loan caps are currently set at $1.5 million ($2 million if a public policy is met) and $4 million, respectively.
The shift to $5 million for standard small business borrowers would support a total project of $12.5 million, and to $5.5 million for small manufacturers would support a total project of $13.75 million, according to the White House and the SBA. While the legislation is pending Congressional approval, this is huge news for small business owners looking for financing who were unable to obtain a 504 loan due to $1.5 million cap. In many cases, these small businesses had already used a 504 loan, they were ready to expand, but were denied the chance to borrow again through the SBA due to the $1.5 million limit.
SBA data shows an increase in the demand for the larger loans currently available. In the 504 program, the percentage of loans for more than $1.5 million has grown, from 15% of total dollars approved in 2005 to 28% in 2009. Obama made his announcement at the offices of Metropolitan Archives, a 504 loan recipient in Hyattsville, Maryland. With this kind of support from the president for the 504 industry, it is certainly hoped the legislation will be fast tracked and put into place by the SBA as soon as possible. The 504 loan program is reserved exclusively for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets. It offers below market, fixed interest rates with long amortization terms (up to 20 years). Over 115,000 savvy, small business owners have taken advantage of 504 loans to grow their businesses since the program began in 1986. In fact, the 504 loan program has funded over $45 billion in loans to growing small businesses over the past 23 years. Click here for the White House release. Click here for President Obama's speech transcript. For more information about 504 loans in Florida, contact Florida First Capital by visiting www.ffcfc.com, emailing us at
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 FFCFC is a state-founded, nonprofit certified development company that promotes economic development and job creation throughout Florida. Under the SBA 504 loan program, FFCFC works with private-sector lenders to provide Florida small businesses with affordable, fixed-rate and long-term financing for the purchase of fixed assets. FFCFC also lends under the Florida Recycling Loan Program and other small business assistance programs.
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Florida First Capital Announces First-Ever Dip below Five Percent Interest for
SBA Commercial Real Estate, Equipment Loans
Tallahassee, Fla. (Oct. 9, 2009) – For the first time ever, the 20-year fixed rate for commercial real estate and equipment loans from the U.S. Small Business Administration’s (SBA) “504” loan program has fallen below the five percent threshold to a historic low of 4.86 percent. This is one of the lowest rates that have ever been widely available in the country for the acquisition and enhancement of commercial space and equipment by small- and mid-size businesses.
“Such a rate may never be seen again, and small business owners can now also save substantial sums on most program fees, which have largely been waived or eliminated under the American Recovery and Reinvestment Act,” said Todd Kocourek, president and CEO of Florida First Capital Finance Corp., Florida’s statewide certified development company.
The SBA 504 loan program is reserved exclusively for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets.
“Business owners who understand the benefits of owning rather than leasing their space and equipment will recognize that there may never be a better opportunity to invest in growing their business.” concluded Kocourek.
Florida First Capital Finance Corp. is the state’s largest non-profit certified development company that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide financing to small businesses. Florida First Capital lends to small businesses under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs.
For more information on the SBA or State of Florida loans, call 888-320-5504, email us at info@ffcfc.com or visit http://www.ffcfc.com.
Click here for a listing of FFCFC business development officers and regional office locations.
Florida First Capital Announces Lowest Interest Rate Ever for SBA “504” Loans
Tallahassee, Fla. (Sept. 8, 2009) – The 20-year fixed interest rate on U.S. Small Business Administration (SBA) “504” loans for commercial real estate fell to 5.14 percent for September – the lowest in history. This is very good news for small businesses owners seeking available and affordable financing in an otherwise tightened commercial credit market.
SBA 504 loans offer small business owners access to low interest, long-term and fixed-rate financing with only 10 percent downpayment requirements for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets.
September’s record 504 interest rate isn’t the first time this year the program has seen historic lows. In April, the rate fell to 5.25 percent and in July to 5.24 percent.
“There has never been a better time for small business owners to take advantage of the 504 program than right now,” said Todd Kocourek, president and CEO of Florida First Capital Finance Corp., Florida’s statewide certified development company.
Between the historically low interest rates coupled with a temporary reduction in most of the 504 program’s fees, borrowers stand to save thousands of dollars both in up front costs and reduced monthly real estate payments.
The temporary reduction of program fees, which will save borrowers about $10,000 on an average loan, is part of the American Recovery and Reinvestment Act and is expected to last until December or until the funds are exhausted.
Florida First Capital Finance Corp. is the state’s largest non-profit certified development company that promotes economic development and job creation throughout Florida by working with the SBA and private-sector lenders to provide financing to small businesses. Florida First Capital lends to small businesses under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs.
For more information on Florida First Capital and its 504 loan program, visit www.ffcfc.com, email us at insider@ffcfc.com or call 888.320.5504.
Florida First Capital Announces SBA Real Estate Loans Nearly Double
Tallahassee, Fla. (July 2009) -- In one of the first signs of economic recovery for small businesses in Florida, U.S. Small Business Administration (SBA) loans for real estate and equipment statewide nearly doubled from April through June over the first quarter of 2009.
According to the most recent figures from the SBA, 113 small businesses in Florida took advantage of the agency’s “504” loan program for real estate and equipment financing from April through June, representing more than $126 million in total projects. During the first quarter, 65 loans totaling approximately $84 million were issued.
“While overall SBA lending for 2009 remains below 2008, the recent uptick in Florida’s 504 loans is a good indication that small businesses are starting to see opportunities for growth and expansion,” said Todd Kocourek, president & CEO of Florida First Capital Finance Corporation, Florida’s statewide certified development company. “Commercial real estate and some business equipment have become more affordable during the economic downturn, and smart business owners are taking advantage of this SBA loan program to buy and expand their facilities.”
SBA 504 loans offer low interest, long-term and fixed-rate financing with only 10 percent downpayment requirements for the purchase, construction or renovation of owner-occupied commercial real estate and/or the acquisition of industrial equipment or other fixed assets.
The program recently got a boost via federal Stimulus legislation which eliminated most program fees and allows for a limited amount of refinancing of existing debt if there is a business expansion. To boot, the 20-year fixed interest rate for 504 loans now stands at 5.24 percent, the lowest in the program’s history.
Florida First Capital Finance Corporation is a statewide non-profit certified development company that promotes economic development and job creation by working with the SBA and private-sector lenders to provide available and affordable financing to small businesses. Florida First Capital lends to small businesses under the SBA 504 loan program for real estate and equipment as well as via the Florida Recycling Loan Program and other small business assistance programs.
For more information on Florida First Capital and its 504 loan program, visit www.ffcfc.com, email us at insider@ffcfc.com or call 888.320.5504.
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