First Business Development Corporation (FBDC Jacksonville)

The SBA 504 Specialist for Growing Construction Businesses

For a construction company ready to stop renting office and yard space and buy their own facility — or ready to purchase heavy equipment outright instead of leasing — the SBA 504 loan program is one of the best financing tools available, and most contractors have never heard of it. FBDC (First Business Development Corporation) is a Certified Development Company (CDC) that specializes exclusively in SBA 504 loans, helping Jacksonville businesses access below-market fixed interest rates with down payments as low as 10%.

The typical SBA 504 structure splits the financing three ways: a conventional bank provides 50% of the project cost, the SBA 504 program covers 40%, and the borrower puts down just 10%. Compare that to a conventional commercial loan requiring 20-25% down, and the cash flow advantage becomes obvious. For a contractor buying a $1 million shop and yard, the difference between $100,000 down (504) and $250,000 down (conventional) is $150,000 that stays in the business for equipment, payroll, and working capital.

The SBA 504 program covers real estate purchases, facility construction or renovation, and heavy equipment with a useful life of 10+ years. For Jacksonville contractors who have been leasing a shop for years and are ready to build equity in their own facility, FBDC walks them through the entire process from pre-qualification through closing.

The ConstructionPerks Take

We think FBDC is best for: Growing Jacksonville contractors ready to purchase real estate (office, shop, yard) or major heavy equipment who want the lowest possible down payment and a fixed interest rate that beats conventional commercial financing.

One thing to think about is the approval timeline. SBA 504 loans involve coordination between the conventional lender, FBDC as the CDC, and the SBA. This process typically takes 45-90 days from application to closing. If you need financing urgently, a conventional commercial loan closes faster. If you can plan ahead, the 504 program's lower down payment and below-market rate make the wait worthwhile.

Another consideration is owner-occupancy. SBA 504 real estate loans require the borrower to occupy at least 51% of the property for existing buildings or 60% for new construction. This means the program works for buying your own shop, office, or yard — but not for purchasing investment property or spec buildings you intend to lease to others.

Frequently Asked Questions

What is an SBA 504 loan?

An SBA 504 loan is a government-backed financing program that provides long-term, fixed-rate financing for major assets like real estate and heavy equipment. The loan structure typically requires only 10% down from the borrower, with a conventional bank covering 50% and the SBA program covering 40% — significantly lower than the 20-25% down payment required by conventional commercial loans.

Can contractors use SBA 504 loans for heavy equipment?

Yes, the SBA 504 program covers heavy equipment and machinery with a useful life of 10 years or more. For construction companies purchasing excavators, cranes, or other major equipment, the low down payment and favorable fixed interest rates make 504 financing attractive compared to equipment leasing or conventional loans.

How much can I borrow through the SBA 504 program?

SBA 504 loans can provide up to $5.5 million in SBA-backed financing (the 40% portion), which means total project costs of approximately $13.75 million are possible. For most Jacksonville contractors buying a facility or equipment, the program comfortably covers their financing needs.

Do I have to occupy the property to use an SBA 504 real estate loan?

Yes, the borrower must occupy at least 51% of an existing building or plan to occupy at least 60% of a newly constructed building. This owner-occupancy requirement means 504 loans work for buying your own shop, office, or yard — not for investment properties or buildings you plan to lease entirely to other tenants.

How long does it take to close an SBA 504 loan?

The SBA 504 process typically takes 45-90 days from application to closing, as it involves coordination between the conventional lender, the CDC (FBDC), and the SBA. Having complete financial documentation, business plans, and property information ready at the start of the process helps minimize delays.