• Middle Market Businesses and the 504 Loan Program

    Many Americans imagine a small business to be a mom and pop store with a handful of employees. It might surprise you to know that over 98% of the 6 million US businesses with employees are defined as a small business. While the government has strict sizing rules that define a small business, a company generally qualifies as a small business concern if it has less than $15,000,000 in net worth and made less than $5,000,000 in net profit per year, averaged over the last two years.

    This means that many companies that identify as middle market also qualify as a small business concern and are eligible for Community Business Finance's 504 Loan Program. Companies with sizeable annual revenues, $20 million or more, don't consider the 504 Loan Program when searching for financing, because they assume they are too large to qualify.

    In addition to being eligible for Community Business Finance's 504 Loan Program, understanding the rules and regulations that define a small business can help owners take advantage of government programs and opportunities reserved exclusively for small businesses. Having a small business certified can provide advantages over the competition.

    It is troubling that many middle market lenders do not offer the 504 Loan Program simply because they don't realize their clients are eligible. In fact, lenders can potentially lose clients when a competitor offers better loan terms with a 504 loan. Middle market lenders should know that the 504 Loan Program supports projects up to $5.5 million and borrowers can have multiple loans in some circumstances.

    Both lenders and borrowers benefit from the 504 Loan Program. For a complete list of these benefits visit our 504 School.

    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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