September 2019
Commercial Lending
Regional Partners Wanted: SBA Extends 504 Loan Program Rural Initiative Pilot Program

The 504 Loan Program Rural Initiative Pilot Program was established by the Small Business Administration (SBA) to provide small businesses in rural areas across the nation with increased opportunities to access capital via the 504 Loan Program for the purchase of major fixed assets like commercial real estate and heavy duty equipment.

The SBA 504 Loan Program Rural Initiative Pilot Program provides small businesses in rural areas with increased opportunities to access capital via the 504 Loan ProgramUnder the pilot program, Certified Development Companies such as Florida First Capital are permitted to make 504 loans outside their normal SBA-defined Region of Operations with the goal of increasing lending and economic growth in rural markets.  The pilot became effective on July 19, 2018, and was recently extended to Sept. 30, 2021.

Additionally, the SBA modified the definition of a ‘‘rural county’’ for purposes of this pilot to include any county that the U.S. Census Bureau classifies as greater than or equal to 30% rural in its most recent decennial census report.

Florida First Capital operates in the SBA’s Region IV, which serves Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee.  There are a total of 608 rural counties in Region IV.

Florida First Capital is currently seeking 504 first mortgage lenders who are active in the SBA’s Region IV outside of Florida to partner with and provide the 504 Pilot Program to assist as many rural small businesses in the area as possible.

Florida First Capital has earned the top lender position for SBA loan production among all SBA lenders in Florida for the past three years in a row and is currently ranked #2 nationally among all active Certified Development Companies.

We bring a wide-ranging depth of knowledge, experience and unparalleled service to the 504 loan process, from sales and marketing, through underwriting and SBA authorization of the loan, then closing and funding and finally servicing the loan for its life.

We welcome the opportunity to work with your lending institution and to support rural small businesses throughout Region IV with access to much needed growth and expansion capital.

The SBA 504 Loan Program provides up to 90% financing at below-market, fixed interest rates (no ARMs) and long amortization terms up to 25 years (no balloons) for the purchase of major fixed assets, such as owner-occupied commercial real estate, energy efficient “green” initiatives and heavy duty machinery and equipment and refinancing of conventional real estate loans and other business debt.

504 loans are paired with private-sector commercial loans and provide up to $5 million of aggregate SBA eligibility on standard 504 projects; up to $5.5 million per 504 energy efficient green project not exceed $16.5 million in the aggregate; and up to $5.5 million per eligible small manufacturing project with no limit on total SBA dollars available.  These are SBA 2nd mortgage loan portions only; there is no limit on overall project dollar size.

For more information about working with us under the SBA 504 Loan Program Rural Initiative Pilot Program, contact Deborah Petrell, SVP & Sales and Marketing Manager.  Phone: 561.756.1745 or toll-free at 800.504.LOAN.  Email: deborah@FloridaFirst.com.