FSC First provides access to financing to small and minority businesses through many distinct loan products. The loans are a product of public-private partnerships between a consortium of participating banks, Prince George’s County, the State of Maryland and FSC First.


This loan is ideal for more established business owners who desire to purchase owner-occupied commercial real estate. Interests in commercial real estate may include accommodations, warehouses, retail centers, office buildings, and venues for use by public and private entities. Loans are guaranteed by the U.S. Small Business Administration (SBA). 

    Program Details

    FSC First is a certified development company (CDC) designated by the U. S. Small Business Administration to market, process, close and service the SBA 504 Commercial Real Estate Loan.  FSC First is authorized to serve as the CDC in any commercial real estate or equipment loan transaction in the State of Maryland.

    The SBA 504 Long Term Fixed Assets (Commercial Real Estate and Equipment Loan Program) is available to the more established business owners who desire to purchase owner-occupied commercial real estate. This is generally used by a business to transition from a leased facility in order to consolidate operations, or to acquire equipment that can be used for at least 10 years.

    In its more than 40 year history as a CDC, FSC First has experienced that commercial real estate brokers, chief financial officers, commercial mortgage brokers and other market influencers like certified public accountants are ideal sources of referral for this program.

    Parties to a typical SBA 504 loan structure are as follows:

    • A third-party or first-trust lender, such as a bank or mortgage company, can finance up to 50% of the eligible project costs
    • FSC First, as the preferred CDC, can finance up to 40% of the eligible project costs
    • The business is required to provide at least 10% in owner’s equity to finance the eligible project costs.

    The business is able to obtain up to 90% financing for their expansion project; thus retaining more of its capital for their cash flow needs. The first trust lender (bank or mortgage company) will provide an independent commitment letter, subject to the business owner obtaining a second trust mortgage from FSC First (your preferred CDC).

    From time to time, the typical 50/40/10 financing structure may need to be adjusted. For example, if the business owner is operating a start-up company (or has less than 3 years of profitable operating history) or limited use facility, the SBA requires at least an additional 5% in owner’s equity to support the transaction. The net effect is that the CDC portion reduces to 35% of the eligible project cost and the owner’s equity increases to 15%. This example is for illustrative purposes only.

    • Direct loans for healthy expanding businesses (the CDC portion of the project can be up to $5.5 million or 40% whichever is less)
    • Fixed rate — below market financing
    • Financing for fixed assets: commercial real estate acquisition, construction, machinery and equipment
    • Term — 20 years for real estate, 10 years for machinery and equipment with straight amortization (a major advantage compared to banking competitors)
    • Equity — Typically, a 10% cash down payment is required
    • Interest rates are negotiable

    Program Snapshot

    Up to $5.5 million for healthy expanding businesses

    Loan Term
    25 years for real estate, 10 years for machinery and equipment

    Interest Rate
    Fixed, below market financing


    Join our mailing list to receive the latest news and important updates from the FSC First team.

    You have Successfully Subscribed!