Two Major Reasons for Property Ownership

At Community Business Finance we understand that no two businesses are exactly alike. However, it may surprise you to learn that sometimes two unique companies can achieve different business goals with the same solution. We recently helped two clients realize their individual dreams through property ownership.

Commercial Vessels are Eligible for 504 Loans

Community Business Finance is proud to provide its 504 Loan Program to businesses in Texas and Louisiana. In service to these Gulf Coast states, we want to remind business owners and lending institutions that commercial boats and fishing vessels are an eligible use of 504 loan proceeds. This includes many different types of vessels that are used in businesses supported by our coastal waters: push boats and tug boats that move barges, commercial fishing boats, tour boats, water taxis, and ferries to name a few.

Economic Confidence and the 504 Loan Program

As the economy continues to improve, the prospects for businesses in search of financing are getting brighter. The Thomson Reuters/PayNet Small Business Lending Index registered 126.5 in April 2014, an 18% increase over April 2013. This means that businesses are confident in their long-term goals and are willing to take the financial risks associated with expansion. The good news is that banks are willing to take that risk as well.

Borrower Contribution for the 504 Loan Program

The great news for business owners is that Community Business Finance's 504 Loan Program usually requires only a 10% down payment. In other words, the borrower's contribution is 10% of the total project cost. This percentage certainly makes financing more accessible for companies that need funds for real estate or equipment. However, we are frequently asked about qualifying sources for the down payment. These answers and more can be found in our FAQ.

504 Loans Protect Your Future with Property Ownership

Economists predict that commercial real estate transactions are on the rise. According to Anita Kramer, Vice President of the Urban Land Institute Center for Capital Markets and Real Estate, "Consistent growth in the real estate industry is supported by expected on-going improvements in the economy." Lawrence Yun, the chief economist for the National Association of Realtors, adds, "Vacancy rates are steadily falling." Office, retail, and industrial vacancy rates are all expected to decline over the year. Consequently, the rents in these areas are on the rise.