Many lenders believe they have to be a certified SBA lender to offer any SBA loans. The truth is that the SBA does not require a lender to be certified to participate in the 504 Loan Program because these loans require partnership with a Certified Development Corporation. CDCs, such as Community Business Finance, are nonprofit organizations certified by the SBA to provide 504 loans to small businesses statewide.
The 504 Loan Program, for real estate and heavy equipment purchases, is a take-out financing program. Community Business Finance offers an up-front commitment to finance a project, and the participating private lender provides interim financing, advancing up to 90% of the total project funds during the construction/acquisition period. After the project is complete, proceeds from a debenture sale reimburses or "takes out" the participating private lender (by the net debenture amount of the original SBA authorization).
To streamline the process, Community Business Finance works with the small business borrower to process, approve, close and service the 504 loan. Our loan officers are efficient in gathering the right information, and we make sure the loan is structured to SBA standards from the beginning. This saves valuable time and prevents duplicate efforts.
Private sector lenders may not realize what they are missing by not offering the 504 Loan Program to their customers. For real estate and equipment, 504 loans have better interest rates with longer amortization and lower down payments. These terms are attractive to borrowers and prevent lenders from losing the loan to another bank. In addition, the 504 loan structure allows smaller banks to handle larger projects and larger banks to limit their exposure to certain industries and/or to a particular borrowe
With Community Business Finance as your lending partner, you can start offering 504 loans today.
For more information, contact our offices:
In Louisiana, call Jeanne Bergeron at 1-800-462-1017, ext. 203, or email her at firstname.lastname@example.org.
In Texas, call Bill Ebersole at 713-457-1650, ext. 201, or email him at email@example.com.