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SBA 504 Loan Program Teaches an Early Education Program the Benefits of Owning Commercial Property

Feb 2021

After Grace Huxtable-Mount earned her BA and Masters in Elementary Education and Ph.D. in Educational Leadership from the University of Florida; worked as an elementary school teacher; and developed educational curriculums, she decided to add something else to her resume – small business owner.

In 2009, Dr. Huxtable-Mount opened her first branch of The Learning Experience franchise and by 2020, she had expanded to 4 locations. Exploring options to purchase commercial property rather than leasing, Dr. Huxtable-Mount discovered the Small Business Administration (SBA) 504 Loan Program and realized her business met the eligibility criteria.

It was actually her former landlord who introduced her to Florida First Capital Finance Corporation Vice President and Business Development Officer, Scott Radway. “When working with someone as dedicated as Scott, it really makes you feel more comfortable with the loan process and confident that you will ultimately get to the finish line,” said Dr. Huxtable-Mount.

“Using a 504 loan to purchase commercial property is ideal for both the borrower and the first mortgage lending partner in the deal,” said Radway. “With only 10% down, the borrower preserves vital working capital and receives a long term below-market fixed interest rate with predictable payments. Plus, the 504 program’s unique distributed credit structure allows the first mortgage lending partner to mitigate its loan-to-value exposure making it a win-win.”

Dr. Huxtable-Mount now owns the 10,000 square-foot commercial property housing the business she has operated for several years. She is no longer concerned about rent increases, which can make things challenging when running a business in a leased property. Additionally, now that the school owns the property, it is eligible for tax incentives offered by the state of Florida. Ultimately, Dr. Huxtable-Mount will be able to use those savings to increase the number of children and families she serves and hopefully expand to additional locations.

“The SBA 504 Loan Program has truly been a blessing. It has helped me grow my business by dramatically reducing my operating costs allowing me to manage my cash flow better, which is critical, especially during these unusual times,” said Dr. Huxtable-Mount. “The 504 Loan Program really broke down the barrier to enter into commercial real estate.”

“This was by far the best loan experience I have had,” Dr. Huxtable-Mount continued, “and I look forward to working with Scott again when I am ready to go after my next 504 loan.”

Visit The Learning Experience at thelearningexperience.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.