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SBA 504 Loan Helps Space Coast Preschool Make an Encore Appearance

Feb 2016

Island Prep in St. Augustine was designed to offer a positive academic experience for all learning styles. The lessons are strategically planned to meet the needs of every child. On an average day, a visitor might observe children painting with vegetables, practicing letters in sign language, planting in the garden or participating in a peaceful yoga session.

This kind of innovative approach to prepare young minds for entry to the education program is highly sought. Island Prep is a family owned and operated business that began with 45 families and has grown exponentially over the course of three years to have over 200 children enrolled. Within 4 months of opening, they started a wait list.

With a high level of continuing growth, owners Michael and Danielle Gwiazda expanded their first location as much as they could, a 5,202 square-foot facility that was being leased, but they still needed additional space. They then purchased a second existing 5,256 square-foot existing building and made extensive renovations with financing through Florida First Capital and the Small Business Administration (SBA) 504 Loan Program.

The owners also utilized the 504 Bridge Loan Program, which provides the first mortgage commercial lending partner in the 504 loan 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, thus reducing lender risk.

The Gwiazda's were so happy with the great benefits of the SBA 504 Loan Program for their expansion project - low 10% down payment, long amortization term and below-market fixed interest rate - that they recently worked with Florida First Capital and utilized the 504 Loan Program again for the purchase of their original lease held location.

“Thanks to the Gwiazda's use of the 504 Loan Program for their second location, they were able to preserve valuable working capital for use toward the purchase of their original location,” said Kristen Tackett, Florida First Capital Vice President and Business Development Officer for Northeast Florida. “The cost savings benefit of the 504 program allowed for a low down payment with a longer term than what would be available with conventional financing,” she said

So far they have 90 families on the wait list and more are being added every week. Based on the growing demand for their services, the principals are confident that they will fill up the second location quickly.

Visit Island Prep online atwww.islandprep.com.

For more information about SBA 504 loans in Florida,contact a Florida First Capital Loan Officeror email us atinfo@ffcfc.com. Phone: 850.681.3601 or toll-free at 888.320.5504.