Just like the myths that 504 loans have too much paperwork and take too long to process, you have probably heard that 504 loans have too many fees. This myth most likely originated from the 7(a) program's tiered fee structure and has been applied to all SBA loan programs. Let's examine the facts about 504 loan fees.
There is a prevailing myth that an SBA 504 loan takes too long to prepare and process. While it is true that in the past the SBA was bogged down with laborious paperwork and sluggish processes, many things have changed. The SBA has worked intently to speed up their processing times and reduce their paperwork. The agency has invested in the technology to become more efficient and responsive. They really do want to make it easier to provide borrowers with the capital they need to promote economic growth.
Have you ever wondered why only Certified Development Corporations (CDCs) can offer the 504 Loan Program? The 504 Loan Program 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.
Previously on our blog, we have detailed the steps in preparing for a 504 loan. We identified the crucial information needed for a successful application and outlined the elements of a solid business plan. However, you might not know that there is an extensive network of Small Business Development Centers eager to assist you in gathering and understanding the information necessary for our 504 Loan Program. Even more exciting, consulting services are free of charge and training services cost very little.
A booming enterprise is every business owner's dream. But what if your company's growth actually prevented you from achieving the success you dream about? Rapid success can sometimes create obstacles to getting the financing a business needs. Community Business Finance's 504 Loan Program works within your company's financial framework to successfully deal with these roadblocks.