In its more than 30 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.
No matter what business you’re in, FSC First wants to be in business with you.
The SBA 504 Long Term Fixed Assets (Commercial Real Estate and Equipment Loan Program) is available to the more established business owners who are desiring to purchase owner-occupied commercial real estate (typically to transition from leased facilities, to consolidate its operations or to acquire equipment with a useful life of at least 10 years). Loans are guaranteed by the U. S. Small Business Administration (SBA).
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 Long Term Fixed Assets loans. FSC First is authorized to serve as the CDC in any commercial real estate or equipment loan transaction in the State of Maryland.
In its more than 30 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:
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 be injected into 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.
If you are ready to apply for SBA 504 Long Term Fixed Assets now, please call us or click here to begin the application process.
301.883.6900