Tax Relief for Small Businesses

Governor DeSantis Signs Tax Relief Proposed by

FCF/FFC on Behalf of Small Business Owners

FCF/FFC advocacy efforts pay off as Florida legislature eliminates
double taxation of SBA 504 loans

May 26, 2023

TALLAHASSEE, Fla. — First Capital Finance/Florida First Capital (FCF/FFC) won big for small businesses in Florida during this legislative session. Working hand-in-hand with members of the Florida House of Representatives and the Senate, FCF/FFC secured passage of language addressing the double taxation of SBA 504 loans.

“This is a huge win for both small business owners and our lending partners,” said Todd Kocourek, FCF/FFC President and CEO. “By signing this bill, the state has provided flexibility in structuring loans, reduced lender risk, and removed the double taxation many small business owners incurred.”

FCF/FFC has 40 years of experience working with private-sector lenders to provide small business owners in Florida with long-term, fixed-interest below-market financing through the Small Business Administration (SBA) 504 Loan Program. These loans are used by businesses to buy or build commercial property and purchase heavy-duty machinery and equipment. 

The passage of this year’s tax package eliminates the requirement for additional documentary and intangible taxes when issuing a note to transfer interim loans to an SBA loan. 

The unfair language of the original statute was evident to legislators who saw no reason to impose additional taxation on 504 loans to small business owners simply because the named lender on the interim loan was different than the one on the first mortgage.

Governor DeSantis signed the legislation into law on May 25, 2023, and it goes into effect July 1, 2023.

FCF/FFC thanks the legislature and the Governor for passing such an important piece of tax relief for small business owners and borrowers. 

About First Capital Finance/Florida First Capital 

With 40 years of experience, FCF/FFC is one of the nation’s top-ranked CDCs promoting economic development and job creation in Alabama, Florida, and Georgia. FCF/FFC is a non-profit-certified development company promoting economic development and job creation. 

Under the SBA 504 Loan Program, FCF/FFC works with private-sector lenders to provide eligible small business owners in Alabama, Florida, and Georgia with below-market, fixed-interest rate long-term financing to buy or build commercial property and/or purchase fixed heavy-duty machinery and equipment. Florida First Capital also lends under the Rebuild Florida Business Loan Fund as well as the Florida Recycling Loan Program and other small business assistance programs.

Get in Touch: Email us at [email protected] or call us toll-free at 800.504.LOAN. 

Stay Informed: Visit our website to sign up for monthly interest rate releases plus the latest small business lending information through e-alerts and our monthly e-newsletter.

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Thank you,

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Gloria Mendez Project Assistant
Become Fluent in Floridian with SalterMitchell PR Ofc: (850) 681-3200 www.SMPRFlorida.com   Partner in IPREX, the global communication network