SBA 504

What do we do?

In general, our loans are designed for project amounts up to $12 million or so. Our loans can include acquisition of the commercial real estate, renovation of the commercial real estate, new construction, and/or heavy equipment. Our loans typically involve a first lien on the commercial property of 50% of the total project amount, and a second lien loan, secured by a 100% SBA-guaranteed debenture covering 40% of the total project cost. Finally, a down payment contribution, typically of only 10%, comes from you, the Borrower. These loans are for commercial real estate properties (and/or heavy equipment) that are a minimum of 51% owner-occupied. Fountainhead offers very competitive interest rates, 20 to 30 year amortizations, and exceptional customer service allowing for 24-hour pre-approvals and quick closings – often within 45 to 60 days.

What do we do?

In general, our loans are designed for project amounts up to $12 million or so. Our loans can include acquisition of the commercial real estate, renovation of the commercial real estate, new construction, and/or heavy equipment. Our loans typically involve a first lien on the commercial property of 50% of the total project amount, and a second lien loan, secured by a 100% SBA-guaranteed debenture covering 40% of the total project cost. Finally, a down payment contribution, typically of only 10%, comes from you, the Borrower. These loans are for commercial real estate properties (and/or heavy equipment) that are a minimum of 51% owner-occupied. Fountainhead offers very competitive interest rates, 20 to 30 year amortizations, and exceptional customer service allowing for 24-hour pre-approvals and quick closings – often within 45 to 60 days.

Eligible Borrowers:

  • For-profit, non-publicly traded businesses
  • Tangible business net worth (including affiliates) not to exceed $15 million
  • Average net income of the business not to exceed $5 million over the previous two years
  • Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents (some exceptions apply)

Examples of Property Types Fountainhead Finances:

  • Medical offices or medical facilities (such as labs and clinics)
  • Office buildings (including office condos)
  • Warehouses (and other industrial properties)
  • Day care facilities (for children or adults)
  • Free-standing restaurants
  • Limited-service, flagged hotels (some unflagged destination hotels will be considered)
  • Auto repair shops
  • Assisted-living facilities
  • Call to ask about many other property types that are eligible

Ineligible Borrowers:

  • Non-profits (except sheltered workshops)
  • Passive holders of real estate and/or personal property
  • Lending institutions (mortgage brokers and correspondent lenders are eligible)
  • Life insurance companies (franchised agents are eligible)
  • Businesses located in a foreign country
  • Businesses selling products or services through a pyramid plan
  • Gambling concerns
  • Businesses which restrict patronage
  • Government owned entities (excluding Native American tribes)
  • Consumer and marketing cooperatives (producer cooperatives are eligible)
  • Businesses engaged in loan packaging
  • Businesses that have previously defaulted on a Federal loan
  • Businesses engaged in political or lobbying activities

Ineligible Use of Funds:

  • Working capital
  • Inventory
  • Rolling stock
  • Business “good will” or “blue sky”