SBA 504 Loan Interest Rates
Official monthly SBA 504 effective interest rate tables can be found at Eagle Compliance LLC. 25- and 20-year term loans fund every month; 10-year term loans fund every other month. Effective interest rates are inclusive of servicing fees, which are subject to credit risk of the applicant.
The cold storage warehousing industry can be challenging and expensive, but it can also be a highly sought out and profitable service if you have a state-of-the-art operation.
International Cold Storage (ICS) was formed in 2002 for the purpose of expanding into the business of importing and storing fresh produce from Central and South America. The South Florida company distributes to large retail concerns, mom and pop stores and other produce wholesalers.
ICS' former location in Pompano Beachhad been leased and the landlord, who was absentee, was not keeping up the maintenance on the building and was unwilling to bring the facility up to required industry specifications. Many other cold storage providers face the same issues, with some going out of business rather than attempting to bring their facilities in line or in this case, construct a new facility.
ICS worked with Florida First Capital and the Small Business Administration (SBA) 504 Loan Program to secure financing for ground-up construction of the $6.5 million facility in Oakland Park. The new 44,000 square-foot warehouse sits on a six-acre lot, has 12 receiving docks, six shipping docks and utilizes a new inventory control system that allows for real-time usage for customers. The large lot also provides for efficient movement of containers, as well as room for long-term growth.
ICS' new building is constructed within the now required guidelines per industry regulators when approving cold storage providers, which require a third party audit certification. Because of the change in regulations, many large retailers are not able to utilize older cold storage warehouse facilities because they do not meet the minimum requirements for their company.
“This is the type of project that realizes all of the benefits of the SBA 504 Loan Program,” said Deborah Petrell, Florida First Capital Senior Vice President & Sales and Marketing Manager. “The borrower received a very favorable fixed interest rate over a 20-year term with only 15% down, which helped the company preserve valuable working capital,” she said.
ICS's business has grown dramatically since its inception in 2002, and with that the company needed to be in a facility that will meet and exceed the increasing standards required to be a leader in the cold storage warehousing industry, whether those standards be in the area of food safety, efficiency or service. With their new facility, ICS will be able to do just that.
“As trade into this region increases, due to the expansion of the Panama Canal, we fully expect to see a surge in the need for first-class cold storage facilities,” said Joel Barthel, ICS President and CEO. “ICS has been storing fresh produce for importers and growers for over 12 years with a great emphasis on providing exceptional customer service. Now we'll have an outstanding facility to go along with the outstanding customer service we have always provided,” he said.
For more information about SBA 504 loans in Florida,contact a Florida First Capital Loan Officer hereor email us atinfo@ffcfc.com. Phone: 850.681.3601 or toll-free at 888.320.5504.
