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SBA 504 Loan Interest Rates
May 2022
25-Year Fixed Rate Standard:
5.119%
25-Year Fixed Rate Refinance:
5.133%
20-Year Fixed Rate Standard:
5.061%
20-Year Fixed Rate Refinance:
5.075%
10-Year Fixed Rate Standard:
4.931%
10-Year Fixed Rate Refinance:
4.948%
Full-term fixed interest rates shown; includes all servicing fees
Jun 2021
Ristretto Lounge, LLC, is a start-up business providing coffee, tea, baked goods and retail sales to the community of Opelika, Alabama. Named for a “short shot” of a more highly concentrated espresso coffee, Ristretto Lounge, located near Auburn University, is an ideal respite and gathering place for students.
Owner and operator, Johan Jo, wanted to create a more relaxed atmosphere than found in most grab-and-go coffee shop chains. Thanks to the Small Business Administration (SBA) 504 Loan Program, Ristretto is serving up more than coffee to clients. The new space also provides a collaborative and creative space for students and local residents alike.
Born in South Korea, Jo and his family moved to Canada for his father’s career when he was 7 years old. Within a few years, they relocated to the Auburn-Opelika area so his father could help start Daewon America, Inc., a successful automotive parts manufacturer.
Jo’s dream of owning a coffee shop began as a teenager when on a family trip to South Korea he visited his aunt’s barista school and operated the espresso machines. In 2018, he returned to his homeland for a little more than 2 months to learn more about the ins and outs of the coffee business from his aunt.
With the help of an SBA 504 loan through First Capital Finance, Jo’s dream became a reality.
The $1.3 million 2-story ground-up construction project was completed in early 2020 and includes a 25-foot-long bar with additional seating and a conference room available to rent for presentations and study groups.
“Using an SBA 504 loan to fund ground-up construction is ideal for the both borrower and the lender,” said Angie Sweatman, First Capital Finance Business Development Officer for Central and Southeast Alabama. “With as little as 10% down, the borrower can preserve vital working capital and the long-term below-market fixed interest rate provides predictable payments. Additionally, the 1st mortgage lending partner in the deal is able to mitigate its loan-to-value exposure thanks to the program’s unique distributed credit structure – it’s a win-win.”
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.