504 Loan Program Gives Small Businesses a Chance to Grow, Expand or Start-up

If you’re a small business looking to expand, or even an entrepreneur who wants to start your own company, the 504 Loan Program may be for you. 

The 504 Loan Program is a federal program available through Certified Development Companies (CDCs). It provides fixed rate financing so businesses can buy assets, all to promote growth and create jobs. The Small Business Administration regulates CDCs, which are nonprofits that promote economic development within their communities.

Florida First Capital Finance Corp. is one CDC that serves Polk County. Jennifer Krause, Marketing and Communications for Florida First Capital, said when she worked for the federal government she ran across small businesses that “needed help to buy equipment but paid so much for land they didn’t have money. The 504 Loan is geared toward those smaller businesses.”  

Companies can borrow up to $5.5 million, putting up 10% themselves, then getting 50% from a traditional bank and 40% from CDCs like First Florida Capital for a total loan of $12.5 million.

Polk County Benefits

Sean Malott, President & CEO of the Central Florida Development Council, said the program has helped businesses in Polk County. “The 504 Loan Program is one more tool in our toolkit. The SBA program is helpful for businesses that are looking to buy equipment.” 

In March 2025, 45 Polk County companies from car washes and inns to day care facilities and electrical contractors had active loans as part of the program. Valiant Products, owned by former County Commissioner Bob English, has taken out five loans through the program.

The last time, he invested $8 million to purchase 3D printers.

Krause was so impressed with English and his company she recommended him with the Small Business Administration’s Person of the Year award. “The company is doing good things, and we want to keep that story out there.”  

When he was nominated, English said: “When we have the 3D printed parts division going full speed, we will have hired 10 more employees. 

“Building Valiant Products over the years gives me a great sense of personal satisfaction, knowing that I started Valiant Products manufacturing a simple product like corner guards in my garage to today, manufacturing 3D printed parts that someday will be included in a spaceship landing on Mars.”

Malott said the 504 Loan program is a strong option for small businesses. “It’s a helpful tool when it comes to businesses that want to buy assets. It requires participation from a local bank, so it provides opportunities for the bank as well.”

The Process

Florida First Capital has helped up to 30 breweries in the state, Krause said. “We’re very heavy in that industry, but we also loan to car washes, day cares, crematoriums – you name it.”  

Krause described the application process:  

• “Typically, somebody’s bank will call us and say, ‘This company could use more cash in their pocket.” The company needs only a 10% down payment – a small amount – and borrows the rest to buy things like land, raw materials, buildings and machines, everything but overhead. “They can even buy an existing business. Someone is buying a laundromat. Some are doing ground-up construction. Someone is buying an old Badcock Furniture building and turning it into a soccer training camp for kids in Tampa. Some just want to refinance an existing loan.” 
• The 25-year interest rate is fixed, so you always know what your obligation is. “You don’t have to worry that interest rates will change. Generally, it’s a below-market interest rate; that’s key these days.” In April 2025, the SBA interest rate was 6.2%, about 2% below going rates at the time. 
• In 2025, 100% of the company’s owners must be U.S. citizens or green card holders. 
• The business’ net income on its tax return must be less than $6.5 million and tangible net worth must be less than $20 million. 

Startups can apply for the loans, Krause said. “Of 5,992 loans done in the last government fiscal year, 1,000 were startups. It’s hugely high. You can’t walk into a bank and get a loan to start a business.” 

It takes about two weeks for Florida First Capital to approve the loan; the SBA then signs off on it. In all, the process takes 30 to 60 days, depending on whether more documents are needed.  

Krause said she tries to educate and empower clients. “The 504 Loan Program encourages clients to invest in their future, build equity, and leave unpredictable leases behind. Let ownership be the upgrade they didn’t know they could afford – with less cash upfront, lower long-term costs and more buying power.”