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An SBA 504 Loan Helps Carter's Cabinetry Build on Success

Jan 2021

For Fred Carter, being a quality cabinet maker was always the plan. From a New Hampshire high school woodworking class to owning his own cabinet company – it’s always been about craftsmanship.

Carter’s Cabinetry is a family-owned, custom cabinetry manufacturer located in Ormond Beach, Florida. Originally established in 1987 as Alfred’s Cabinetry, Fred bought out his business partner in 2005 and has grown the company to a multi-million dollar operation. Carter's commitment to impeccable design and high quality products sealed their reputation in the residential and commercial markets.

Carter’s motto, “Cabinets of Distinction,” grew from Fred’s desire to create the finest cabinets. He recalls, “We just built our reputation and kept on getting work. We never really did a whole lot of marketing. It’s all just word of mouth.”

Joining cutting edge technology and a highly qualified staff of 15, Carter’s offers a remarkable experience from design through installation. Based on the client’s needs, the design software creates elevations and perspectives that can be viewed from any angle.

With business coming in from all over the Sunshine State, Carter’s clearly needed more space. So, when an opportunity arose to purchase an additional building next door to their existing location, Fred wasted no time calling Kristen Tackett, Florida First Capital Vice President and Business Development Officer for Northeast Florida.

Florida First Capital helped Carter’s secure financing for the purchase of a 9,000 square-foot building on just over 1 acre. With a total project cost of $590,000 with 90% financing and a fixed interest rate at 2.69% for 25 years, the project was an open and shut deal.

“A 504 loan is ideal for both the borrower and the lender,” said Tackett. “With only 10% down, the borrower preserves vital working capital and gets a long term below-market fixed interest rate with predictable payments. The lending institution mitigates its loan-to-value exposure due to the program's unique distributed credit structure making it a win-win.”

The new facility provides much needed additional workshop and storage space to support the overall growth of the company.

Through a company restructure, economic downturns and a global pandemic, Carter’s maintains its commitment to craftsmanship and customer service. Even after 34 years, Fred Carter insists on sticking to the plan.

Visit Carter’s Cabinetry at carterscabinetry.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.

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 SBA 504 loans in Alabama, Florida or South Georgia, contact a Florida First Capital Loan Officer or email us at info@ffcfc.com. Phone: 850.681.3601 or toll-free at 888.320.5504.