5 Frequently Asked Questions About the 504 Loan Program

When searching for business financing, you are bound to have questions. We have collected some of the more frequently asked questions from companies that we proudly financed with Community Business Finance's 504 Loan Program.

1. Does my business qualify for a 504 loan?

Your business will usually qualify as a small business concern for Community Business Finance's 504 Loan Program if it has less than $15,000,000 in net worth and made less than $5,000,000 in net profit per year, averaged over the last two years.

Comparing 504 Loans versus 7(a) Loans for Buying Property

The SBA 504 and 7(a) loan guarantee programs 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. While the 7(a) loan can also be used for real estate purchases, the 504 loan is better suited for this purpose.

Houston’s Real Estate Market is Expected to Grow

The "Emerging Trends in Real Estate 2015" report from the Urban Land Institute and PricewaterhouseCoopers ranked Houston as the country's #1 market to watch in 2015. Houston moved up from #2 last year and #5 in 2013. "You have an economic boom, you have job creation, and when you have job creation, you have demand for everything real estate," said Mitch Roschelle, U.S. real estate advisory practice leader at PwC. In fact, global investors consider Houston "the perfect storm for commercial real estate."

The 504 Loan Program Step by Step Step 4: Final Funding

Community Business Finance's mission is to encourage economic development throughout Texas and Louisiana. As part of this mission, we are dedicated to borrower education on our 504 Loan Program.

Your 504 loan will go through four stages during the loan process. Community Business Finance will navigate the entire process, from application through final funding, to make it as easy as possible for you. Today we will explain Step 4: Final Funding as part of a four-part series.

The 504 Loan Program Step by Step Step 3: Closing

Community Business Finance's mission is to encourage economic development throughout Texas and Louisiana. As part of this mission, we are dedicated to borrower education on our 504 Loan Program.

Your 504 loan will go through four stages during the loan process. Community Business Finance will navigate the entire process, from application through final funding, to make it as easy as possible for you. Today we will explain Step 3: Closing as part of a four-part series.