The SBA 504 Loan Program:
Maximum Leverage for Florida Businesses
The SBA 504 Loan Program: Long-Term Fixed-Rate Financing
The SBA 504 loan program is a powerful economic development tool designed to provide Florida small businesses with long-term, fixed-rate financing for major fixed assets. This program is the premier choice for business owners looking to purchase, construct, or renovate owner-occupied commercial real estate or acquire heavy machinery and equipment.
By partnering with a Certified Development Company (CDC) and a private-sector lender, we help you secure up to 90% financing, allowing you to preserve your working capital for business growth.
The 504 Advantage: Why Florida Owners Choose It
Low Down Payment: Retain your cash with equity injections as low as 10%.
Fixed Rates for Decades: Lock in a low, predictable interest rate for 10, 20, or 25 years.
No Balloon Payments: Unlike many conventional commercial mortgages, the 504 program is fully amortized.
Support for Large Projects: Total project costs can often exceed $10 million, with the SBA portion reaching up to $5.5 million.
Lower Monthly Payments: Longer amortization periods mean lower monthly debt service, improving your business’s cash flow.
Understanding the 504 Loan Structure
The SBA 504 program uses a unique tiered structure to maximize your leverage:
50% First Trust Deed: Provided by a private-sector lender (Bank or Investor).
40% Second Trust Deed: Provided by a CDC and guaranteed 100% by the SBA.
10% Borrower Contribution: The small business owner's equity injection.
Note: For startups or special-purpose properties (such as hotels or gas stations), the borrower contribution may increase to 15% or 20%.
Eligible Project Costs
The 504 program covers more than just the building price. You can often include:
Real Estate Acquisition: Buying land or existing buildings.
Construction & Improvements: Building new facilities or renovating existing ones.
Machinery & Equipment: Purchasing long-term machinery with a life of at least 10 years.
Soft Costs: Professional fees, appraisals, environmental studies, and interest during construction can typically be financed.
Eligibility Requirements
To qualify for an SBA 504 loan in Florida, your business must meet the following:
Owner-Occupancy: You must occupy at least 51% of an existing building or 60% of a newly constructed facility.
Business Size: A tangible net worth of less than $15 million and an average net income of less than $5 million after taxes for the previous two years.
For-Profit Status: The business must operate as a for-profit entity in the United States.
Experience the FloridaSBALoan.com Difference
Securing a 504 loan requires coordinating between a bank and a CDC. We partner with seasoned investors and SBA experts who specialize in this specific two-loan structure. We understand the Florida market and work to ensure your project is funded efficiently.
Stop renting and start building equity. Contact us today for a free analysis of your commercial real estate project and see how the 504 program can transform your business's future.
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