Growing Number of Lenders Take Advantage of Secondary Market for SBA 504 Loans

Maitland, FL, July 2, 2015 (Newswire.com) - Fountainhead Commercial Capital recently announced it has added nearly two dozen new lenders to its FastTrack 504TM program, a unique secondary market opportunity for bank and non-bank lenders in conjunction with the SBA 504 loan program.  Fountainhead now enables banks and credit unions to easily offer the benefits, terms and low rates associated with 504 loans to clients that are financing owner-occupied real estate.  Fountainhead manages the entire loan process for lenders and pays originating lenders non-interest income (premiums) on the first mortgage portion of these projects. 

"We are enabling banks, credit unions and non-bank lenders to essentially outsource the entire process of offering a 504 loan to clients," said Chris Hurn, Fountainhead CEO.  "The lender keeps the client relationship as we don't compete for deposits, a highly-specialized SBA department isn't necessary for a lender to establish or maintain, and our participating lenders receive valuable non-interest income."

"We have had an incredible response since launching FastTrack 504TM in late March. Lenders love the SBA 504 program but many of them are not staffed properly to take advantage of it."

Chris Hurn, CEO

SBA 504 loans provide financing for the purchase of fixed assets, such as commercial real estate and machinery, at below market, long-term fixed interest rates. 

Lenders participating in FastTrack 504TM originate the 504 loan but then hand over the engagement to Fountainhead which manages underwriting, selection of a required Certified Development Company partner, secures SBA approvals, orders all third party reports and eventually closes and funds the loan.  Lenders within the program can earn loan premiums up to 8% of the funded first mortgage loan amount, while they work on other, core business for their institution.

FastTrack 504TM is currently offered in 12 states: Florida, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, West Virginia and Wisconsin.  Fountainhead intends to expand nationwide very soon.

"We have had an incredible response since launching FastTrack 504TM in late March,” said Hurn.  “Lenders love the SBA 504 program but many of them are not staffed properly to take advantage of it.  And new regulations may make delivering this program more challenging for all but the largest banks.  Our new 'cradle to grave' approach offers a multitude of benefits to lenders and their clients alike."

Fountainhead Commercial Capital, a nonbank lender specializing in the SBA 504 loan program, was founded by some of the most experienced and awarded SBA 504 lenders around.  More information is available at www.Fountainhead504.com or by calling 800-770-1504.