The 504 Loan Program is beneficial to both the lender and the borrower. Community Business Finance presents three great reasons that community lenders will love the 504 Loan Program.
Before you renew the lease on your building this year, you should consider the many benefits of owning your business property. Ownership provides financial advantages that leasing cannot, while offering control and long-term consistency. Through the 504 Loan Program, you can secure a mortgage with monthly payments that are often lower than your current rental amount, as well as a low down payment.
We wish to thank our clients and our lending partners for choosing Community Business Finance in 2017. For more than a decade, Community Business Finance, together with our lending partners, has proudly helped hundreds of businesses borrow more than $200 million to expand their operations and create new jobs in Texas and Louisiana. While we are honored to have helped so many businesses realize their dreams, ultimately our goal is for every business that is eligible for a 504 Loan to have access to a 504 Loan, when it best suits their business needs.
Saturday, November 25th, is Small Business Saturday. Positioned between Black Friday and Cyber Monday, Small Business Saturday allows us to use our holiday shopping dollars to recognize the importance of small businesses and the contributions they make to our communities and our country's economy.
This week, October 30 – November 3, is National Veterans Small Business Week. NVSBW was created to honor Veteran entrepreneurs who continue to serve our country by starting businesses, creating jobs and fueling economic growth.
With more than 27 million small businesses in the United States, small businesses are critical to our nation's economy, employing over half of the country's private-sector workforce.
Community Business Finance recently helped a client in Louisiana purchase property with a 504 Loan. The commercial janitorial service was unfamiliar with the 504 Loan Program, however the proceeds enabled the owners to buy the building that they had been leasing for many years. With a 504 Loan, they were able to put only 10% down and are very happy with a 20-year fixed rate mortgage on the SBA's portion of the loan.
Community Business Finance's mission is to encourage economic development throughout Texas and Louisiana. In carrying out this mission, we are dedicated to borrower education and seek to inform businesses about the underutilized 504 Loan Program. As a dynamic resource for our communities, we have created a library of information to help borrowers understand the 504 Loan Program and prepare them for a successful loan outcome.
Community Business Finance provides businesses with fixed-rate 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 lending partner for 50% of the project cost and a second lien loan for 30% - 40% of the project cost, financed by Community Business Finance through the sale of a debenture bond. The borrower provides up to a 20% down payment, but typically only 10%.
In 1999, Congress designated May as National Military Appreciation Month to allow the nation the opportunity to publicly demonstrate its appreciation for the sacrifices and successes made by present and past service members. In addition to Memorial Day, May honors our military with Armed Forces Day, Loyalty Day and Military Spouse Appreciation Day.
The old adage "good things come in small packages" certainly applies to our recently closed loan for Perrier Esquerre Contractors LLC. The owners were renting a commercial space and wanted to purchase land and a larger building from which to operate their company. Community Business Finance was pleased to help this company obtain financing through the 504 Loan Program with a total project cost of less than $350,000. In fact, the SBA portion of the loan was less than $150,000, much lower than most home mortgages these days.