• Community Business Finance’s 504 Loan Guide Part 1

    Are you interested in the 504 Loan Program but unsure about what is involved? Community Business Finance's four-step loan process makes getting a 504 loan easier to understand. Our loan experts will navigate the entire process, from application through final funding, to make it as painless as possible for the borrower.
    In part 1, we explain the application and approval process and initial funding. For even more information, visit our 504 School.

    Step 1: Application and Approval

    To help you get started, our loan underwriter assembles the company, financial and personal information required for your application and SBA loan package. We have gathered a list of information you need, including tips on writing a business plan.

    At the same time we are preparing your SBA loan package, your bank secures approval of the first-trust-deed portion of your finance package. Because our loan officer and processor coordinate closely with your bank, partnering with Community Business Finance from the start prevents costly delays by avoiding process duplication. Community Business Finance obtains approval on the 504 loan package and arranges for SBA authorization of funds. Partnering with Community Business Finance keeps everything on track and avoids missteps that may hinder the loan process. Our attention to detail is why we have a proven history of faster approvals and faster loan turnarounds. We bring the right people together to create a partnership whose mission is to make your business dreams come true.

    Step 2: Initial Funding

    Under the 504 Loan Program, Community Business Finance partners with another lender 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.

    Join us next week for Part 2: Closing and Final Funding.

    Contact our offices 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.

    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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