An SBA 504 loan from Florida First Capital is typically
used for owner-occupied commercial real estate.
Example:
A total project costing $1 million would break down as
follows:
| Purchase of land and buildings |
$ 800,000.00 |
| Renovations |
$ 100,000.00 |
| Machinery or equipment |
$ 50,000.00 |
| Soft costs (Professional fees, closing costs, etc.) |
$ 50,000.00 |
| Total |
$1,000,000.00 |
The financing for the project would break down as follows:
| Entity |
Loan Amount |
Percent of Project |
| Private Lender |
$500,000 |
50% |
| Florida First Capital |
$400,000 |
40% |
| Business/ Borrower |
$100,000 |
10% |
For the 504 portion of the project, the borrower benefits
from a 20-year, fixed rate which is normally below market
prices. In addition, the borrower is typically only required
to put down 10% of the total project cost which does not
have to be cash.
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