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  • 5 Reasons to Use a 504 Loan

    Community Business Finance's 504 Loan Program is designed to offer the best loan options available. We want to make your business dreams come true with easy, affordable financing. Here are five solid reasons to choose a 504 loan.

    1. Build Equity, Build Your Business

    You create a valuable asset for your business when you purchase real estate. Instead of giving away your hard earned profits to a landlord, use those lease dollars to build equity in a property that you own. Community Business Finance's 504 Loan Program advantages mean your monthly loan payments are lower than lease payments with no sudden increases. A 504 loan allows you to keep more precious working capital each month while investing in your business's financial future.

    2. Low Down Payment

    Community Business Finance's 504 Loan Program offers down payments as low as 10% of the project cost. Traditional loan down payments are upwards of 25%. Again, this allows you to keep more of your cash reserves for emergencies or other uses.

    3. Better Interest Rate

    In its 504 Loan Program, Community Business Finance finances 40% of the total project cost with a second lien loan. This loan rate is usually below market and is calculated based on the debenture rate for the month the loan is funded. A conventional lender finances 50% of the project cost with a first lien loan. These two loans have one monthly payment and the blended interest rate is still below straight conventional loan rates.

    4. Fixed Interest Rate

    Conventional loan rates are typically only fixed for a certain length of time, such as 3-10 years. After that, the rate is reset and could become variable or even need to be refinanced. A variable rate means you could incur costly increases in your monthly debts, and refinancing incurs costs that use up valuable cash reserves.

    Community Business Finance's 504 Loan Program has a fixed rate, meaning the interest rate will remain the same for the loan's entire term no matter what market interest rates do. This keeps your monthly payments the same over the entire term. A steady monthly payment allows you to project your financial obligations more accurately.

    5. Long Term Financing

    504 Loans have 20-year amortizations. Not only does this mean that you will enjoy the security of a fixed interest rate for 20 years, but it also allows for smaller monthly payments. Again, this reduces your monthly debt obligations and allows you to build up your cash reserves for emergencies or other uses.

    Community Business Finance's 504 Loan Program offers lower down payments, fixed interest rates, longer amortizations, and regular lower monthly payments.

    To Get Started fill out a short online form and a loan expert will contact you.

    You can also contact our offices:

    In Texas call Bill Ebersole at 713-457-1650, ext. 201, or email him at bill@communitybusinessfinance.com.

    In Louisiana, call Jeanne Bergeron at 1-800-462-1017 or email her at jeanne@communitybusinessfinance.com.


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