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 2: Initial Funding as part of a four-part series.
Step 2: Initial Funding
Under the 504 Loan Program, Community Business Finance partners with another lender (i.e., your bank) to share the total financing for a loan. Both partners make a loan to a qualifying small business. With the SBA's authorization, your bank funds a first lien loan to close escrow. As part of escrow, your bank will also issue a temporary "bridge" loan to provide interim financing while your SBA 504 loan is being prepared for funding. The bridge loan "bridges" the gap between initial funding and project completion, when Community Business Finance funds the SBA-guaranteed second lien loan. For projects with no construction phase, the bridge period is usually 45-60 days. With new construction or renovations, this period is much longer and ends when the project is completed. Read our blog to learn more about bridge loans and join us next week for Part 3: Closing.
Contact Community Business Finance today to see why our 504 Loan Program is the right choice for your business financing, and why we are the right lending partner to build your business dreams.
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 firstname.lastname@example.org.
In Louisiana, call Jeanne Bergeron at 1-800-462-1017 or email her at email@example.com.