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.
Most people's basic experience with roll form manufacturing is watching rain gutters being manufactured and installed right in front of their very own eyes. However, the world of custom roll form manufacturing is much more complex and requires the expertise that few manufacturers have.
Since 1928, Pyramid Mouldings has been a leading custom roll former and fabricator of metal parts that are used in many functional and decorative applications, primarily for the appliance, heavy truck and office furniture systems markets. According to the company, it holds strong market shares in each of its three primary market segments.
WhenPyramid Mouldingssought financing for the purchase of $5.2 million in specialized manufacturing equipment to be housed at two of their roll form plants (one in Green Cove Springs, Florida, and the other in Rossville, Georgia), the company turned to Florida First Capital and the Small Business Administration (SBA) 504 Loan Program.
As the SBA's premier financing program for heavy duty fixed machinery and equipment purchases, a 504 loan provides the best terms with up to 90% financing at below-market, fixed interest rates and amortization terms of 10 or 20 years (based on the useful life declaration from the manufacturer or appraiser).
“The 504 program's low 10% down payment is a real benefit when you are looking at a loan for long-life fixed assets costing millions of dollars,” said Kristen Tackett, Florida First Capital Vice President and Business Development Officer for Northeast Florida. “This is a perfect example of how the 504 Loan Program preserves working capital that is so vital to a company's ongoing operation,” she said.
One often overlooked benefit of the 504 Loan Program is that equipment or commercial real estate can be spread across different locals or even states. As long as the company is based within the market area of the Certified Development Company that provides the 504 loan, the ability to finance its operations within the United States is a great advantage of the program.
Another benefit of the 504 Loan Program is small manufacturers who qualify for SBA 504 financing may be eligible for up to $5.5 million per project on the SBA second mortgage portion of the project. There is no limit on the amount of the first mortgage of a 504 project (which is provided by a 504 Third Party Lending Partner working in conjunction with Florida First Capital) and therefore no maximum project size. In many cases, qualified small manufacturers with projects exceeding $20 million can still obtain up to 90% financing under the 504 Loan Program.
There is no limit on the number of SBA 504 loan projects allowed to small manufacturers, which means that small manufacturers looking for additional 504 financing may be eligible even if they have committed or outstanding SBA loans.
Additionally, funds for small manufacturing projects are not limited by the SBA's usual aggregate lending limit of $5 million per borrower, which means small manufacturers that previously reached their SBA maximum have the ability to receive additional loans.
Get Started on an SBA 504 Machinery and Equipment Loan
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.
