November 2018
Borrower Profile
SBA 504 Loan Brings Together Pups and Pale Ales in Unique Northeast Florida Space

Kanine Social is creating quite the bark and buzz among the Jacksonville area’s animal lovers and their four legged fur babies.

Kanine Social Jacksonville FloridaThis unique concept combines dog daycare with an indoor-outdoor dog park and a craft beer and coffee bar, offering a one-of-a-kind boutique experience for dogs and humans that can’t be found anywhere else in the region.

When owners Daniel Moffatt and Dustin Fries learned that this relatively new concept had proven successful in other dog friendly cities such as Dallas, Austin, Denver and even Tampa, they were convinced that it would work in dog-friendly Jacksonville.

Kanine Social encompasses a 15,500 square-foot former warehouse built in the 1950s that underwent extensive renovations.  The dog park offers 14,000 total square-feet of indoor-outdoor play space plus a 2,000 square-foot patio.  There’s a separate play area for small dogs and 3 self-wash bathing stations to clean tired pups.  Supervised daycare is also available for half and full days.

For the humans, a craft beer and coffee bar features 15 local and regional brews on tap along with kombucha, cold brew coffee and wine in a relaxed atmosphere surrounded by multiple TVs.  There’s even a bar for the pups, with water on tap.

With a total cost of $1.8 million, Moffatt worked with Florida First Capital and financed the project through the Small Business Administration (SBA) 504 Loan Program, allowing him to take full advantage of significant cost saving benefits offered by the program.  Key among these are a low down payment structure, below-market fixed interest rates and long amortization terms that keep out-of-pocket expenses low and enable the crucial preservation of working capital.

However, in order to secure the interim financing needed for the lengthy renovations, Moffatt and his commercial lending partner in the 504 deal turned to a program offered by Florida First Capital known as the 504 Bridge Loan.

Under the SBA 504 Loan Program, commercial lenders partner with a certified development company like Florida First Capital to provide small business owners with up to 90% financing for the purchase of owner-occupied commercial real estate and/or fixed machinery and equipment.

Typically, a 504 loan is structured whereby a commercial lending partner finances 50% of the project and holds the first mortgage.  Florida First Capital/SBA finances 40% of the deal and holds the second mortgage.  The borrower provides a 10% down payment.

One of the most critical stages for a commercial lending partner in an SBA 504 loan project is the interim phase between the commercial lending partner’s closing and the permanent takeout of the second mortgage by the SBA, during which time the commercial lending partner is at risk on the second mortgage.

The 504 Bridge Loan Program addresses this exposure and timing difference by providing commercial lending partners with bridge loan funds to cover all or part of the second mortgage during the interim period of the project until the permanent SBA second mortgage offered through the 504 program takeout occurs.

“The 504 Bridge Loan Program is great for projects where construction plays an important and often times lengthy role in the process and helps make for a smooth transition to permanent financing by alleviating interim risk for our commercial lending partners,” said Kristen Tackett, Florida First Capital Vice President and Business Development Officer for Northeast Florida.

Visit Kanine Social on line at

For more information about SBA 504 loans in Alabama, Florida or South Georgia, contact a Florida First Capital Loan Officer or email us at  Phone: 850.681.3601 or toll-free at 800.504.LOAN.