At Community Business Finance, we offer both popular SBA loan guarantee programs: 504 and 7(a). While both programs require in depth business plans, they are designed for different business needs, with different goals in mind. The 504 loan is intended for economic development; therefore, its use is restricted to real estate and fixed asset purchases, as these promote job creation. The 7(a) loan can be used for working capital for almost any business expense.
Did you know that out of the 6 million US businesses with employees, over 98% are defined as a small business? In fact, small businesses are responsible for 60% to 80% of all new jobs created in America. Small businesses are so important that the federal government offers the 504 Loan Program designed to help grow small businesses. What exactly, then, defines a small business?
As you have probably heard by now, interest rates are on the rise. As debenture rates rise, the interest rates on SBA loans also rise. For businesses seeking property or equipment loans, finding the lowest interest rate seems like the best move. However, bear in mind that the interest rate is only one aspect of your loan contract. Therefore, the loan with the lowest interest rate might not actually be the best loan for your business.
Whether your business needs a new office space or manufacturing equipment, securing a loan is often the first step. Finding the right lender and the right loan for your business can be confusing and exhausting. Fortunately, Community Business Finance offers the 504 Loan Program which will help you expand your operations.