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Orlando's manufacturing sector continues expanding beyond theme park support into aerospace, medical devices, and advanced technology. As these manufacturers grow, equipment costs often represent their largest capital investment. SBA 504 loans offer a strategic financing solution that preserves working capital while providing long-term, fixed-rate financing for essential machinery and equipment.
The SBA 504 program finances equipment with a 10+ year useful life through a three-party arrangement. Your business contributes just 10% down, a bank partner provides 50% senior financing, and FBDC/SBA covers the remaining 40% at fixed rates.
For a $500,000 CNC machining center, you need just $50,000 down versus $100,000-$150,000 with traditional equipment loans. SBA 504 equipment loans feature 10-year terms at fixed rates, locked for the entire term with no variable rate risk affecting your cash flow projections.
Orlando manufacturers span diverse industries including aerospace and defense supporting space coast contractors with precision components, medical device manufacturing producing equipment for Central Florida's healthcare sector, electronics and technology, food processing for hospitality suppliers, and plastics and composites operations.
Strategic areas for Orlando manufacturers include Orlando Central Park with highway access, East Orlando Industrial with proximity to UCF research partnerships, South Orange County's advanced manufacturing clusters, and the emerging Boggy Creek Road Corridor.
Manufacturing equipment qualifying for 10-year financing includes CNC machines and machining centers, injection molding equipment, 3D printers and additive manufacturing systems, assembly line automation, laser cutting and welding systems, industrial ovens and heat treatment systems, and packaging machinery.
Essential equipment beyond production also qualifies, including compressed air systems, industrial HVAC and ventilation, backup power generation, crane systems and lifts, and warehouse racking with 10+ year life.
Traditional equipment financing typically requires 20-30% down with 3-5 year terms maximum, resulting in higher monthly payments and variable rates tied to prime. SBA 504 equipment loans need only 10% down with full 10-year amortization, creating lower monthly payments and better cash flow for operations. The fixed rate for the entire term provides predictable payment amounts and protection from rate increases.
Many Orlando manufacturers benefit from financing both assets together. A typical combined project might include a $2 million building purchase and $500,000 equipment acquisition for a total project of $2.5 million with a down payment of just $250,000, only 10%. This single closing for both assets maximizes working capital preservation.
Advanced manufacturing technology qualifies, including robotics and automation systems, industrial IoT sensors and systems, and specialized software when purchased with hardware. Green manufacturing equipment may qualify for higher loan limits, including energy-efficient production systems, LED lighting conversions, and solar power installations.
SBA 504 can include equipment installation costs, training for new systems, shipping and delivery, initial setup and calibration, and related construction modifications.
Before applying, obtain detailed equipment quotes and verify 10+ year useful life. Manufacturers should prepare three years of business tax returns, current financial statements, equipment specifications, and a business plan showing equipment use.
FBDC helps manufacturers structure optimal financing, coordinate with equipment vendors, manage timing requirements, and navigate SBA requirements. The typical timeline includes a 14-day SBA approval target with coordinated equipment ordering and installation scheduling.
Orlando offers manufacturers UCF engineering partnerships, CareerSource Central Florida training programs, and Orlando Economic Partnership support. Use equipment financing to increase production capacity, improve quality capabilities, reduce labor costs through automation, enter new market segments, and enhance your competitive position.
Orlando's manufacturing sector offers tremendous growth potential. The combination of strategic location, educated workforce, and business-friendly environment creates opportunities for manufacturers ready to expand. With 10% down and fixed rates for 10 years, SBA 504 financing makes equipment acquisition accessible and predictable.
Ready to explore equipment financing options for your Orlando manufacturing business? Contact Florida Business Development Corporation at (813) 348-0660 or visit fbdc.net. Our team specializes in helping Central Florida manufacturers structure optimal financing solutions through the SBA 504 program.
