How is an SBA 504 loan structured?

A commercial lending partner finances 50 percent of the project and holds the first mortgage, Florida First Capital and the SBA finance 40 percent on a second mortgage, and the borrower provides a 10 percent down payment. That gives up to 90 percent financing for owner-occupied commercial real estate or fixed heavy duty machinery and equipment.

What is the 504 Bridge Loan Program?

It gives commercial lending partners interim second mortgage financing between the lender's closing and the permanent SBA takeout, the stretch during which the lender carries the second mortgage at risk. Bridge loans run from a recommended minimum of $250,000 to a legal maximum of $5 million, with an initial six month term and automatic extensions with pricing adjustments after one year.

Which states does the company lend in?

Alabama, Florida and Georgia. It expanded beyond Florida into South Alabama and South Georgia in late 2016, received SBA approval for statewide Alabama lending in July 2018 and for Georgia in July 2021, and operates as First Capital Finance in Alabama and Georgia.

SBA lenders

Florida First Capital Finance

Florida First Capital Finance Corporation is a nonprofit certified development company that arranges SBA 504 loans for small businesses buying or building owner-occupied commercial property and buying fixed heavy duty machinery and equipment. It operates in Alabama, Florida and Georgia, and does business as First Capital Finance in Alabama and Georgia.

A 504 loan is typically structured with a commercial lending partner financing 50 percent of the project on a first mortgage, Florida First Capital and the SBA financing 40 percent on a second mortgage, and the borrower putting down 10 percent, for up to 90 percent total financing. The company also runs a 504 Bridge Loan Program that covers a lending partner's second mortgage exposure during the interim period before the permanent SBA takeout, with bridge loans from a recommended minimum of $250,000 to a legal maximum of $5 million and an initial six month term.

Founded by the state of Florida in 1983 and licensed by the SBA as a certified development company since 1984, the company left the state budget in 1997 and became financially self-sufficient. The SBA approved statewide Alabama operations in July 2018 and Georgia in July 2021. Beyond the 504 program it lends through the Rebuild Florida Business Loan Fund and the Florida Recycling Loan Program. Its corporate office is at 1351 N. Gadsden Street in Tallahassee.

Effective 504 rates are posted monthly and change with each funding cycle; 25 and 20 year loans fund every month while 10 year loans fund every other month. Confirm current rates, fees and eligibility with the company rather than relying on the posted table.

Best for

Small businesses in Alabama, Florida or Georgia that will occupy the property they are buying or building and want long-term fixed-rate SBA 504 second mortgage financing. Not for investors buying property to lease to others.

What they do

SBA 504 commercial real estate loans
SBA 504 machinery and equipment loans
SBA 504 commercial debt refinancing
SBA 504 Green loan program
504 bridge loans for commercial lending partners
Rebuild Florida Business Loan Fund working capital loans
Florida Recycling Loan Program loans

Details

Attribute	Value
Founded	1983
Ownership	Nonprofit
Licenses	SBA-licensed Certified Development Company since 1984
How they charge	Posts SBA 504 effective rates monthly; September 2026 rates were 6.54% on the 25 year fixed standard loan and 6.60% on the 10 year.

What stands out

Founded by the state of Florida in 1983 and licensed by the SBA as a certified development company since 1984.
Lends in Alabama, Florida and Georgia, trading as First Capital Finance in Alabama and Georgia.
SBA approved statewide Alabama operations in July 2018 and Georgia operations in July 2021.
Bridge loans run from a recommended minimum of $250,000 to a legal maximum of $5 million, with a total project limit of $20 million.

Common questions

How is an SBA 504 loan structured?: A commercial lending partner finances 50 percent of the project and holds the first mortgage, Florida First Capital and the SBA finance 40 percent on a second mortgage, and the borrower provides a 10 percent down payment. That gives up to 90 percent financing for owner-occupied commercial real estate or fixed heavy duty machinery and equipment.
What is the 504 Bridge Loan Program?: It gives commercial lending partners interim second mortgage financing between the lender's closing and the permanent SBA takeout, the stretch during which the lender carries the second mortgage at risk. Bridge loans run from a recommended minimum of $250,000 to a legal maximum of $5 million, with an initial six month term and automatic extensions with pricing adjustments after one year.
Which states does the company lend in?: Alabama, Florida and Georgia. It expanded beyond Florida into South Alabama and South Georgia in late 2016, received SBA approval for statewide Alabama lending in July 2018 and for Georgia in July 2021, and operates as First Capital Finance in Alabama and Georgia.