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Sunday, July 4, 2010

Intracoastal Bank of Palm Coast to extend SBA Loans

Jacksonville Business Journal reported that six area banks had a total of $11.3 million in SBA loan approvals as of May 31, nearly the triple the amount compared to last year.

Among the six banks is Palm Coast's Intracoastal Bank.

Bruce Page, president and CEO of Intracoastal Bank in Palm Coast, said his bank is "putting a greater emphasis on SBA loan programs and is looking for prospective projects that might be eligible." Intracoastal is particularly interested in making 504 loans, and has made two this year.

How does the 504 loan work? The bank puts up 50 percent of the loan amount, a certified development company puts up 30 percent to 40 percent and the borrower is responsible for the remaining 10 percent to 20 percent of the balance.

Certified development companies are private, nonprofit corporations that act as intermediaries between the bank and the borrower, and they process and administer the 504 loans.

The 504 loan is made specifically for fixed assets, which are usually real estate-related costs such as acquiring land or buildings, expanding or renovating existing buildings and buying equipment.

Small Business Resources in Palm Coast:

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