• Qualifying Down Payment Sources for 504 Loans

    The great news for business owners is that Community Business Finance's 504 Loan Program usually requires only a 10% down payment. In other words, the borrower's contribution is 10% of the total project cost. This percentage certainly makes financing more accessible for companies that need funds for real estate or equipment.

    We are frequently asked about qualifying sources for the down payment, and have provided some answers below. More information can be found in our FAQ.

    Where can my down payment come from?

    Your contribution can come from your own savings, home equity, or monies given to you by a friend or family member that you don't have to repay. You cannot finance your down payment requirement through other sources (for example, credit cards or another lending source).
    It is important to note that at least half of your contribution must come from your own sources, such as savings. You can also borrow against your retirement accounts, which represent personal equity.

    Can items already purchased be counted as my down payment?

    Yes! As long as you have receipts for purchases made and proof of payment, funds already spent in the start up of your business can be applied toward your down payment.

    Can home equity lines of credit be used for my down payment?

    If equity is borrowed and secured by another asset, you must demonstrate that repayment of that loan comes from sources other than the cash flow of the business. The borrower's salary does not qualify as a source of repayment.

    Community Business Finance's 504 Loan Program is designed to offer affordable loans with low down payments. We are eager to make your business dreams a reality.

    You can get started by filling out a short form on our website or 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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