Buying a Business: A 504 Loan in Action

When recently discussing some myths that surround Community Business Finance's 504 Loan Program, we noticed something amusing. There is a prevalent belief that 504 loans are not really meant for start-ups, because entrepreneurs should be focused on building the business, not buying a building. Strangely enough, there is an equally prevalent belief that 504 loans are mostly for start-ups, because they don't have the financial history needed to get a conventional loan and the SBA wants to help people get started (versus maintaining a healthy business).

SBDCs Are a Powerful Ally for 504 Loans

It is no secret that knowledge is power. Search engines return hundreds of quotes about this fundamental truth. Obviously the more information you have, the better prepared you are for whatever you encounter in life, especially in business. Business owners seeking 504 loan financing for expansion or starting a business have a powerful ally in Small Business Development Centers (SBDCs). A well-prepared applicant greatly improves their chances of success.

Financing Your Dreams: A 504 Loan in Action

Do you have a passion that you dream of turning into a business? Turning dreams into reality can seem impossible at times, but Community Business Finance’s 504 Loan Program helped Dr. Charles Quick do just that.

Dr. Quick established a private veterinary practice and soon realized he missed the consultative nature of the academic environment. He wanted to create a collaborative business where he could work with other professionals who shared his passion for veterinary medicine and the animals that they serve.

Bridge Financing and the 504 Loan Program

Community Business Finance is committed to helping businesses achieve their dreams with our 504 Loan Program. We provide businesses with financing for major fixed assets such as office buildings, retail buildings, warehouse facilities, heavy equipment, and commercial vessels. Projects are typically financed with two loans: a first lien loan through a commercial lender for 50% of the project cost and a second lien loan for 30% - 40% of the project cost, financed by Community Business Finance. The borrower provides a 10% - 20% down payment.