July 2020
Borrower Profile
Classic Pizza Crusts Continues Making Dough with an SBA 504 Loan

To be one of the world’s favorite foods, pizza had humble beginnings. As early as 600 BC, Persian soldiers are reported to have baked flatbreads with cheese and dates on top of their battle shields; however, it was 16th century Naples, Italy that would finally dub the culinary creation “pizza” and introduce the traditional combination of crust, sauce and cheese. On any given day in the U.S., it is estimated that 13% of the population enjoys a slice of pizza.

Classic Pizza Crusts Pompano Beach, FloridaRecognizing that, when it comes to pizza there is no such thing as too much, Classic Pizza Crusts was established in Pompano Beach, Florida in 1998 by Dominick Fimiano and passed on to his son, Anthony, in 2014. Classic Pizza manufactures three main products, 1) frozen pizzas, 2) frozen pizza crusts and 3) dough balls for food distributors throughout the U.S. whose customers include restaurants, hotels, amusement parks, schools, stadiums, festivals, convenience stores, and more. Additionally, Classic Pizza services the cruise line industry, creating an enormous demand for frozen pizza crusts.

More space was needed to accommodate the company’s expanding operations and Florida First Capital Corporation delivered with an SBA 504 loan for the purchase of a 49,000 square-foot facility and industrial equipment for pizza making. With a total project cost of $6,115,000 with 90% financing at 2.99% fixed over 20 years, Classic Pizza has the perfect recipe for success.

“Although it is commonly known the incredibly low SBA interest rate is fully amortizing for 20 or 25 years, it’s important to note the advantage for a small business to NOT have their entire loan mature in 10 Years as is common with conventional financing.” said Alejandro Buitrago, Florida First Capital Vice President and Business Development Officer for the Miami area.  “With an SBA 504, only the 50% bank financed first lien matures in 10 years – this is an underrated advantage of an SBA 504 Loan.”

For Classic Pizza, an expansive new facility and a 20-year low fixed interest rate SBA 504 loan are the perfect combo. Visit Classic Pizza Crusts at www.classicpizza.com.

The SBA 504 Loan Program provides up to 90% financing at below-market, fixed interest rates and long amortization terms up to 25 years for the purchase of major fixed assets, such as owner-occupied commercial real estate, renovations, new construction, energy efficient “green” initiatives and/or fixed heavy duty machinery and equipment, as well as the refinance of commercial mortgage and other business debt with or without a cash-out option.

Under a typical 504 loan structure, a commercial lending partner provides financing for 50% of the 504 loan and takes a first lien position; Florida First Capital/SBA provides 40% of the project financing and takes a second lien position; and the borrower provides a down payment of just 10% in most cases.

504 loans 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 SBA 504 loans in Alabama, Florida or South Georgia, contact a Florida First Capital Loan Officer or email us at info@FloridaFirst.com.  Phone: 850.681.3601 or toll-free at 800.504.LOAN.