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

的 504年桥 Loan Program, available for any 佛罗里达 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.

Financed by the 佛罗里达 Department of Economic Opportunity (DEO), 佛罗里达 First Capital administers the program on behalf of DEO. All 佛罗里达 Certified Development Companies (CDCs) may 参与.

504 bridge loan proceeds are allocated from the U.S. Department of Treasury for the state of 佛罗里达’s participation in the State Small Business Credit Initiative (SSBCI). 的 SSBCI is a federal initiative of the U.S. Small Business Jobs Act that encourages states to establish or strengthen state programs that support lending to small businesses.

请注意: 的 504年桥 Loan Program is available in 佛罗里达 only.

Bridge loan funds may be used for interim project financing of the second mortgage of authorized SBA 504 loan projects, including owner-occupied commercial real estate (turn-key acquisitions, renovation or build-out projects and ground-up construction) and/or fixed heavy duty machinery and 设备 purchases.

Bridge Loan Sizes – 十大正规赌平台平台 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.)

Interest Rate – 的 second mortgage bridge loan and note will bear interest at a rate set by the commercial lending partner, 至少 equal to the rate applicable to the first mortgage note 在 the interim.

Origination Fees – For straight acquisition projects and projects with renovations, the commercial lending partner agrees to pay an amount equal to one half of the origination fee attributable to the second mortgage bridge loan or .5% (one half of one percent) of the principal sum of the bridge loan, whichever is greater. For ground-up construction projects, the origination fee is 1% (one percent) of the principal sum of the bridge loan.

商业 Lending Partner Servicing Fee – 的 commercial lending partner is entitled to retain a servicing fee on the bridge 十大正规赌平台平台1元.25% 在 the first six (6) months of the term of the bridge loan, provided the bridge loan is not in default (straight acquisition projects and projects with renovations only; servicing fees are not applicable for ground-up construction projects). 的 servicing fee shall be a portion of interest payments made by the borrower equal to 1.25% divided by the non-default annual interest rate payable on the bridge loan.

例如, assume the borrower’s monthly interest payment on the second mortgage bridge loan is $1,000 at an interest rate of 5%.  By utilizing the described calculation (1.25% ÷ 5%), the commercial lending partner would retain 25% of the total interest collected ($250) as the servicing fee.

Term – 的 initial term of the bridge loan is six (6) months. If the 504 loan has not funded by expiration of the initial six (6) month term, the second mortgage bridge loan will be automatically extended at six (6) month increments with the following pricing adjustments:

• Upon extension of the term, the servicing fee the commercial lender is entitled to retain on the bridge loan ends (this provision applies to non-ground-up construction projects only).
• If the term of the second mortgage bridge loan is extended beyond one year (and for every 6-month period of extension thereafter), there will be a 0.25% (one quarter of one percent) extension fee.

基金ing – Assuming participation interest of 100% of the second note, funds from the bridge loan must comprise between 45% and 75% of the total amount of loan funds disbursed at all times 在 the interim.

Recourse – 的 504年桥 Loan is non-recourse to the permanent lender.

还款 – Bridge loan funds are repaid through takeout via the SBA 504 loan.

504 bridge loans are provided by the 佛罗里达 Department of Economic Opportunity and Enterprise 佛罗里达 and processed by 佛罗里达 First Capital

Following the normal underwriting and approval process of the SBA 504 loan, 佛罗里达 First Capital distributes a borrower certification for signature. 的 commercial lending partner provides 佛罗里达 First Capital with its internal credit write up and commitment letter.

If the project includes any renovations or construction, the commercial lending partner provides 佛罗里达 First Capital with its internal construction monitoring and disbursement policy. 的 contractor supplies a resume, proof of insurance or bond and estimate of time frame for project completion.

Once the 504 bridge loan documentation is completed and approved, a participation agreement with the commercial lending partner is executed and bridge loan funds are disbursed.

呼叫 your CDC lender!

• CDC provides FFCFC with the Loan Authorization, SBA credit file, the commercial lender’s credit write-up and lender’s commitment letter.
• FFCFC provides the lender and borrower will certifications.
• For construction, the commercial lender provides the FFCFC with its construction monitoring and disbursement policy.
• Once approved by DEO, a Participation Agreement is executed, and the proceeds are available for disbursement.