Quite often, when a company needs a business loan, their first step is to contact the lender where they do all their business banking. They inquire about a conventional or traditional commercial loan. As the name suggests, this is the most common type of commercial loan. The company feels comfortable using a familiar lender and receiving a familiar loan. However, quite as often, this is not the right loan. There is a better way: The SBA 504 loan program.
We have previously discussed the SBA 504 loan program and how it was created to help small businesses get the financing they need to promote job creation and retention. The Small Business Administration established the Certified Development Corporation Program to finance these loans, since the SBA does not loan money directly.
Bourjois Abboud's business was booming. While this growth was exciting, he found it difficult for his facility's size to keep pace with the increased demands of his clientele. Looking at industry projections, Mr. Abboud realized he simply needed more space.
Community Business Finance and the 504 Program: Creating Partnerships that Benefit Houston Businesses
Community Business Finance's mission is to encourage economic development in the SBA Houston District and throughout Texas. To accomplish this we actively promote the SBA 504 Program to lenders and businesses. We want to foster lender-CDC partnerships for the benefit of Houston businesses.