Loan Structure & Down Payment Schedule
The 504 Loan Program is a partnership program between Florida First Capital/First Capital Finance – a nonprofit SBA licensed and regulated Certified Development Company – and
a commercial lender. Working with participating lenders, Florida First Capital/First Capital Finance provides up to 90% financing at below-market, fixed interest rates and long amortization
terms for eligible fixed asset purchases.
Typically, a commercial lender provides financing for 50% of the 504 loan project and takes a first lien position; Florida First Capital/First Capital Finance/SBA provides 40% of the project
financing and takes a second lien position; and the borrower provides a down payment of just 10%. There is no limit on overall project size. If a project is a start-up business (less than two
years in operation) or a special purpose facility, the borrower’s down payment increases to 15%.
If a project is a special purpose facility and a start-up business, the borrower’s down payment increases to 20%. Machinery and equipment only loans may qualify with a 10% or 15%
borrower down payment.