SBA 504 Loan Interest Rates

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March 2024

25-Year Fixed Rate Standard:

25-Year Fixed Rate Refinance:

20-Year Fixed Rate Standard:

20-Year Fixed Rate Refinance:

10-Year Fixed Rate Standard:

10-Year Fixed Rate Refinance:

Official monthly SBA 504 effective interest rate tables can be found at Eagle Compliance LLC. 25- and 20-year term loans fund every month; 10-year term loans fund every other month. Effective interest rates are inclusive of servicing fees, which are subject to credit risk of the applicant.

Servicing the States of Alabama, Florida, and Georgia.

504 Bridge Loan Program

504 Bridge Loan Program Eases Interim Risk for SBA Lending Partners.

Under the Small Business Administration (SBA) 504 Loan Program, commercial lenders partner with a certified development company (like Florida First Capital) to provide small business owners with up to 90% financing for the purchase of owner-occupied commercial real estate and/or fixed machinery and equipment.

Typically, a 504 loan is structured whereby a commercial lending partner finances 50% of the project and holds the first mortgage. Florida First Capital/SBA finances 40% of the deal and holds the second mortgage. The borrower provides a 10% down payment.

One of the most critical stages for a commercial lending partner in an SBA 504 loan project is the interim phase between the commercial lending partner’s closing and the permanent takeout of the second mortgage by the SBA, during which time the commercial lending partner is at risk on the second mortgage.

The 504 Bridge Loan Program, available for any Florida SBA 504 loan, addresses this exposure and timing difference by providing commercial lending partners with bridge loan funds to cover the second mortgage until the permanent SBA second mortgage takeout occurs.

504 Bridge Loan Basics

  • Loans amounts are generally capped at $5 million (SBA portion).  Certain eligible energy-efficient or manufacturing projects may qualify for up to $5.5 million, in line with SBA standards.  Generally, the total project limit is $20 million. (This restriction applies to the principal amount of the loan directly supported by the 504 bridge loan, plus all other loans for the same loan purpose that close on or about the same date.)
  • The initial term is six (6) months with automatic extensions at six (6) month increments.
  • Bridge loan funds may be used for interim project financing of the second mortgage of authorized SBA 504 loan projects, including straight acquisitions, renovations or build-out projects, ground-up construction and/or fixed heavy duty machinery and equipment purchases.

NOTE: The 504 Bridge Loan Program is available in Florida only.

Participating Lenders

Since establishment of the SSBCI 504 Bridge Loan Program, a variety of lenders have participated in the program, including:

  • 121 Financial Credit Union
  • American Enterprise Bank of Florida
  • The Bancorp Bank
  • BayFirst National Bank
  • Capital City Bank
  • CenterState Bank
  • Climate First Bank
  • First Citrus Bank
  • First National Bank of South Miami
  • First Southern Bank
  • Flagler Bank
  • Floridian Community Bank
  • Florida Traditions Bank
  • Gainesville Stimulus Fund
  • HomeBanc
  • Intracoastal Bank
  • Marine Bank & Trust Company
  • Marquis Bank
  • Ocean Bank
  • Platinum Bank
  • Professional Bank
  • Prosperity Bank
  • Reunion Bank of Florida
  • Seacoast National Bank
  • The Jacksonville Bank
  • United Community Bank dba Seaside Bank
  • US Century Bank
  • TotalBank

The SSBCI 504 Bridge Loan Program is open to all Florida Certified Development Companies. For more information on the program, please contact Christine Melloh, Program Administrator, at 800.504.LOAN or email at Christine@deleonsocialmedia.com.

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