| By Kristen Tackett • Lender | Please note that information in this article may be time sensitive and specific to the date it was originally published. Please contact the author for updates to this information. |
Money just got a little bit cheaper for manufacturing businesses in Florida. Under a new budget resolution signed by President Bush, manufacturing businesses can now borrow larger amounts at low, fixed rates through a government loan program.
Manufacturing companies can now borrow up to $4 million under the U.S. Small Business Administration's 504 loan program, up from the prior limit of $1 million. The loan program offers small business owners access to low interest, long-term, fixed-rate financing for the purchase, construction or renovation of real estate or the purchase of industrial equipment.
Using the 504 program, lenders provide financing for 40 percent of a project. A local bank finances 50 percent of the project and the borrower is responsible for a 10 percent down payment.
"The change means that any manufacturing business purchasing or building a facility under $10 million can get maximum benefits from the 504 program," says Todd G. Kocourek, president of Florida First Capital, a statewide certified development company (CDC).
Provisions in the Omnibus Appropriations Act, a wide-ranging $388 billion bill that funds thousands of government projects nationwide, increase other 504 loan limits as well. The general purpose 504 loan maximum rises from $1 million to $1.5 million. The public purpose 504 loan maximum rises to $2 million (public purpose loans include those for women-, veteran- and minority-owned businesses as well as for businesses located in rural areas).
To qualify, a company must be a forprofit small business in Florida. Most Florida companies are eligible, and most projects qualify for 10 percent down payment terms. The program supports purchase of real estate which will be primarily occupied by the purchaser, and used in its business.
Statewide CDCs such as Florida First Capital, promote job creation throughout Florida by working with the SBA and private-sector lenders to provide financing to small businesses. They lend under the SBA 504 loan program and the State of Florida Recycling Loan Program as well as other small business assistance programs.
Kristen Tackett is the
Northeast Florida loan officer with Florida First
Capital Finance Corp. and can be reached at (904) 334-0651 or
(904)861-2270. Kristen can also be Emailed at kristen@ffcfc.com.
