Did You Know? Larger 504 Loans for Small Businesses

Small businesses can now take advantage of larger 504 loan limits and borrowers who already have loans with the Small Business Administration (SBA) can also return for additional funding thanks to program changes under the Small Business Jobs Act of 2010.

The gross debenture for standard and public policy 504 projects is now permanently increased to $5 million. Additionally, the gross debenture for 504 projects involving small manufacturers, reductions in energy consumption by at least 10% or for plant, equipment and process upgrades of renewable energy sources is now $5.5 million per project. (NOTE: These are SBA loan amounts. There is no limit on overall project size.)

Remember that even with these much larger debenture sizes, the applicant must be a small business. A small business is defined as follows: for-profit, owner-occupied, credit worthy businesses located in Florida with a maximum tangible net worth of not more than $15 million and average net income after Federal income taxes (excluding carry-over losses) for the two full fiscal years prior to application of not more than $5 million; manufacturers with fewer than 500 employees.

For more information about 504 loans in Florida, contact Florida First Capital by visiting www.ffcfc.com, emailing us at insider@ffcfc.com or calling 888.320.5504.