{meta_title}

504 Bridge Loan Program Addresses Risk on Second Mortgage Interim Financing for Lending Partners

Jun 2014

One of the most critical stages for a commercial lending partner in a Small Business Administration (SBA) 504 loan is the interim phase of a project between their closing and the SBA takeout of the second mortgage, during which time the commercial lending partneris at risk on the second mortgage.

The 504 Bridge Loan Program available through Florida First Capital addresses this exposure and timing difference by providing 504 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 takeout occurs.

Florida First Capital manages the back office administration of the 504 Bridge Loan Program working in conjunction with Enterprise Florida and has the most experience of any Certified Development Company in the state in getting 504 bridge loans done.

Bridge loan funds may be used for interim project financing of the second mortgage of authorized SBA 504 loan projects, including straight acquisitions, renovations or build-out projects, ground-up construction and/or fixed heavy duty machinery and equipment purchases.

504 bridge loan sizes range from $250,000 (recommended minimum) to $5 million (legal maximum). There is no limit on total project size. The initial term is six (6) months with automatic extensions with pricing adjustments.

To participate in the Bridge Loan Program, 504 commercial lending partners enter into a Participation Agreement with Enterprise Florida Inc., the participating lender. Contact Florida First Capital for more information.

Click Here for Terms, Rates and Fees and FAQs

504 bridge loan proceeds are provided as part of a $97.6 million allocation from the U.S. Department of Treasury for the state of Florida's participation in the State Small Business Credit Initiative (SSBCI). The SSBCI is a federal initiative of the U.S. Small Business Jobs Act of 2010 that encourages states to establish or strengthen state programs that support lending to small businesses.

To date, the 504 Bridge Loan Program has deployed more than $25 million in interim phase second mortgage financing to 504 commercial lending partners in Florida, according to the Florida Department of Economic Opportunity.

Interested 504 commercial lending partners should contact a Florida First Capital loan officer for an application and other required documents.Click here to locate one of our loan officersin your local area. Email:info@ffcfc.com. Phone: 850.681.3601 or toll-free 888.320.5504.