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504 Refinance Loan Puts Nation's Largest Harley-Davidson Dealer on the Road to Debt Recovery

Mar 2013

Bruce Rossmeyer opened his first motorcycle business, a Harley-Davidson dealership in Daytona Beach, in January 1994. Over the next 15 years, he became the nation's largest Harley dealer, with 13 dealerships in five states including Florida.

In 2005, Rossmeyer opened Destination Daytona Harley-Davidson, a 109,000 square-foot megastore, laying claim to the largest Harley dealer location in the world. Sadly, in 2009 Rossmeyer was killed in a tragic motorcycle crash.

With the loss of Rossmeyer, a dire economy and restricted banking environment, and the changing landscape of the business, the Rossmeyer family endeavored to make some key changes in their business.

Working with Kristen Tackett, Florida First Capital Vice President and Loan Officer for Northeast Florida, the family was able to refinance their existing high-interest mortgage utilizing the Small Business Administration's (SBA) temporary 504 Debt Refinancing Program, saving over $19,000 per month as a result.

Originally part of the Small Business Jobs Act of 2010, the temporary 504 Debt Refinancing Program did not become fully operational until February 2012. This significantly shortened the period of time that small businesses could use 504 loans to refinance qualifying existing debt before it expired on Sept. 27, 2012.

During that time, however, more than 2,700 small businesses like Bruce Rossmeyer's Harley-Davidson refinanced nearly $7 billion in old, expensive debt to unleash capital that was reinvested into their businesses and which helped accelerate the economic recovery.

Efforts are currently underway in Congress by the National Association of Development Companies (NADCO) and the 504 industry to permanently reinstate the popular SBA 504 Debt Refinancing Program.

Under the refinancing program, small business owners could finance up to 90% of the current appraised property value, plus 504 eligible refinancing costs. It is estimated that reinstating the 504 Debt Refinancing Program could enable tens of thousands of small businesses to free up capital locked in their facilities to create and retain jobs.

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.