FBDC 504 Velocity Bridge Loan Program

HomeFBDC 504 Velocity Bridge Loan Program

Remove Lender Risk from SBA 504 Loans

The FBDC 504 Velocity Bridge Loan Program minimizes or eliminates risks for banks and third-party lenders who finance first lien loans (typically for 50% of project costs) for SBA 504 Loan Program participants. The program provides these lenders with bridge loan funds to cover the “debenture funding”– the second lien loan (typically 30% – 40% of the cost, financed by FBDC), prior to the permanent takeout of the SBA second mortgage.

Who’s It For?

  • Banks
  • Third-Party Lenders for SBA 504 Loan Program Participants
  • Ideal for construction loans. FBDC can provide complete interim financing up to 90%, which eliminates all construction risk for our lending partners.


  • Provides certainty
  • Minimizes or eliminates risk associated with SBA 504 Loans
  • Speeds funding and project completion
  • Lowest bridge loan cost in the market
  • Ensures maximum efficiency of bridge loan approval, closing, construction administration, and funding of the debenture loan

Difference Makers

  • Avoids governmental agency delays that can extend timing, increase costs or affect funding
  • Not dependent upon funds being available at the time the loan is needed
  • Not pari-passu with bank partners (unlike other programs). Takes a fully sub-ordinate lien position behind our partners

Success Story

The General Manager of the Club at Cheval (semi-private golf course located in Tampa, FL), decided he wanted to purchase the course from the owner. After exploring purchase options with his banker at First Citrus Bank, the 504 Program proved to be the best fit with its low down payment and long-term fixed rate.

His 504 Loan application was approved with FBDC and First Citrus Bank just as the COVID pandemic struck – flooding the credit market with uncertainty. Knowing both the bank and borrower may be weary about moving forward with the purchase, the FBDC Business Development Officer informed them of the FBDC 504 Velocity Bridge Loan Program, which provides gap-financing prior to the SBA loan funding. Why was gap-financing the right decision for this loan?

  • Gap-financing mitigates all credit risk as it pertains to the SBA funding.
  • Our Velocity Program is not subject to state approvals or administration, creating an expedited process like no other. 


This particular Velocity Loan was:

  • APPROVED in less than a week
  • CLOSED within three weeks (along with Third Party Loan)
  • FUNDED sba debenture approx. 60 days after closing


By utilizing the FBDC 504 Velocity Bridge Loan Program, the borrower was able to eliminate risk and uncertainty, experience an expedited funding process and obtain a 2.59% 25-year fixed rate. Finally, due to the CARES Act, the borrower is not required to make a payment on their SBA loan for the next six months.

We look forward to working with you on SBA 504 Velocity Bridge Loan financing opportunities.

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