A common misconception about the 504 Loan Program is that the prepayment penalty is much higher than for conventional loans. The prepayment penalty is actually based on the loan's debenture rate and not the effective rate. We will explain the difference, as many borrowers are confused as to how the prepayment penalty is calculated. First, however, we want to address why the 504 Loan Program has a prepayment penalty.
This May, Americans celebrate National Military Appreciation Month. Started by Congress in 1999, this month allows the nation the opportunity to publicly demonstrate its appreciation for the sacrifices and successes made by present and past service members. In addition to Memorial Day (May 28), May honors our military with Loyalty Day (May 1), Military Spouse Appreciation Day (May 11), and Armed Forces Day (May 19).
Since more than half of Americans either own or work for a small business, we celebrate America's small businesses and the big contributions they make in our local communities and to our national economy. Every year since 1963, National Small Business Week, April 29 – May 5, 2018, is our chance to salute the small business owners who create two out of every three jobs for Americans. Despite being the key to our nation's recovery after the recession, many small businesses cannot get the funding they need to expand their operations.
Before you renew the lease on your building this year, you should consider the many benefits of owning your business property. Ownership provides financial advantages that leasing cannot, while offering control and long-term consistency. Through the 504 Loan Program, you can secure a mortgage with monthly payments that are often lower than your current rental amount, as well as a low down payment.
We wish to thank our clients and our lending partners for choosing Community Business Finance in 2017. For more than a decade, Community Business Finance, together with our lending partners, has proudly helped hundreds of businesses borrow more than $200 million to expand their operations and create new jobs in Texas and Louisiana. While we are honored to have helped so many businesses realize their dreams, ultimately our goal is for every business that is eligible for a 504 Loan to have access to a 504 Loan, when it best suits their business needs.
Saturday, November 25th, is Small Business Saturday. Positioned between Black Friday and Cyber Monday, Small Business Saturday allows us to use our holiday shopping dollars to recognize the importance of small businesses and the contributions they make to our communities and our country's economy.
This week, October 30 – November 3, is National Veterans Small Business Week. NVSBW was created to honor Veteran entrepreneurs who continue to serve our country by starting businesses, creating jobs and fueling economic growth.
With more than 27 million small businesses in the United States, small businesses are critical to our nation's economy, employing over half of the country's private-sector workforce.
Community Business Finance recently helped a client in Louisiana purchase property with a 504 Loan. The commercial janitorial service was unfamiliar with the 504 Loan Program, however the proceeds enabled the owners to buy the building that they had been leasing for many years. With a 504 Loan, they were able to put only 10% down and are very happy with a 20-year fixed rate mortgage on the SBA's portion of the loan.
Community Business Finance's mission is to encourage economic development throughout Texas and Louisiana. In carrying out this mission, we are dedicated to borrower education and seek to inform businesses about the underutilized 504 Loan Program. As a dynamic resource for our communities, we have created a library of information to help borrowers understand the 504 Loan Program and prepare them for a successful loan outcome.