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.
The Small Business Administration (SBA) and Florida First Capital partner Florida Export Finance Corporation (FEFC) recently signed a statewide strategic alliance memorandum committing to a partnership to help demystify international trade for Florida's small business owners.
FEFC President J. Stephen Fancher agreed many small business owners haven't considered expanding their customer base with international customers because of the perception that it's too risky or complicated.
“We've been trying for 21 years to get the message out. We can help small business owners of any size understand the risk and help mitigate that risk,” said Fancher.
The strategic alliance formalized a long-standing working relationship between the SBA and FEFC. According to Fancher, the strategic alliance is important to leverage the strengths and differences of the two organizations.
One of the major differences between FEFC and the SBA is their ability to provide capital to small businesses that want to expand through exports but for whatever reason, don't qualify for SBA international loan guarantees.
“SBA programs are designed to fit a national program and have different requirements. FEFC has rules to fit Florida businesses. We can work more with micro businesses with less collateral, time in business and accounting processes than the SBA or Export-Import Bank (EXIM). We're not in competition with them because we work with those who don't qualify for those agencies' programs. We are all working together to increase small business exports,” said Fancher.
SBA international loan programs in the South Florida District, which covers the 24 counties south of Orlando, are showing an increase over the previous year. In FY 2012 through June 30, 2012, the district approved 55 loans totaling more than $35.1 million. The North Florida District, comprising counties north of Orlando, tallied 10 loans for more than $4.9 million. In FY 2013 through June 30, 2013, the South Florida district approved 65 loans totaling more than $62.7 million. In the North Florida District, eight loans totaling more than $5.6 million have been approved.
“This is the heart of Florida exports,” said Fancher referring to Miami and South Florida.
But small business interest in the SBA's North Florida District is also strong, said SBA North Florida District Director Wilfredo Gonzalez.
“Everybody seems to be involved with Jacksonville's dredging project as the city is geared up for the Panama Canal expansion project,” said Gonzalez. “The beauty of Jacksonville is the total logistics available for international trade when you consider the port, highways and railroad lines. The regional chamber of commerce and our international chambers have a strong interest in learning more about exports. There will be more business opportunities for Florida small businesses and this alliance will help in our efforts,” said Gonzalez.
Florida First Capital and FEFC frequently partner on 504 loan and export deals, providing a further resource available to Florida's small business lending community. Additionally, Florida First Capital and FEFC are founding members of the Florida Finance Network (FFN).
FFN is a consortium of nonprofit economic development lending organizations whose sole purpose is to ensure Florida small businesses have open access to affordable capital resources to help them develop and succeed in today's demanding economic times. FFN members specialize in different areas, but collectively they cover the majority of small business financing needs through various federal, state and private lending programs.
Source: SBA South Florida District Office
For more information on SBA Export Assistance, click here.
For more information on Florida Export Finance Corporation, click here.
