3 Mistakes That Could Keep You From Getting a 504 Loan

Community Business Finance's mission is to help businesses realize their dreams. Since 2005, we have approved more than 200 loans for a total of over $150,000,000. We have the experience and knowledge to assist you with the 504 Loan Program and increase your chances of a successful loan process.

Our experts have identified 3 mistakes that borrowers make during the application process and offer a few tips to help you avoid them.

504 School: What You Need to Know About 504 Loans

If you have questions about Community Business Finance’s 504 Loan Program, we have the answers in our 504 School. In one easy place, you will discover a wealth of information regarding the 504 Loan Program and how it can help you achieve your business dreams. We also offer tools and applications to simplify the loan process and get you started towards your financial goal.

How are 504 loans structured?

Buying a Business: A 504 Loan in Action

When recently discussing some myths that surround Community Business Finance's 504 Loan Program, we noticed something amusing. There is a prevalent belief that 504 loans are not really meant for start-ups, because entrepreneurs should be focused on building the business, not buying a building. Strangely enough, there is an equally prevalent belief that 504 loans are mostly for start-ups, because they don't have the financial history needed to get a conventional loan and the SBA wants to help people get started (versus maintaining a healthy business).

SBDCs Are a Powerful Ally for 504 Loans

It is no secret that knowledge is power. Search engines return hundreds of quotes about this fundamental truth. Obviously the more information you have, the better prepared you are for whatever you encounter in life, especially in business. Business owners seeking 504 loan financing for expansion or starting a business have a powerful ally in Small Business Development Centers (SBDCs). A well-prepared applicant greatly improves their chances of success.

Financing Your Dreams: A 504 Loan in Action

Do you have a passion that you dream of turning into a business? Turning dreams into reality can seem impossible at times, but Community Business Finance’s 504 Loan Program helped Dr. Charles Quick do just that.

Dr. Quick established a private veterinary practice and soon realized he missed the consultative nature of the academic environment. He wanted to create a collaborative business where he could work with other professionals who shared his passion for veterinary medicine and the animals that they serve.

Bridge Financing and the 504 Loan Program

Community Business Finance is committed to helping businesses achieve their dreams with our 504 Loan Program. We provide businesses with financing for major fixed assets such as office buildings, retail buildings, warehouse facilities, heavy equipment, and commercial vessels. Projects are typically financed with two loans: a first lien loan through a commercial lender for 50% of the project cost and a second lien loan for 30% - 40% of the project cost, financed by Community Business Finance. The borrower provides a 10% - 20% down payment.

Commercial Vessels are Eligible for 504 Loans

Community Business Finance is proud to provide its 504 Loan Program to businesses in Texas and Louisiana. In service to these Gulf Coast states, we want to remind business owners and lending institutions that commercial boats and fishing vessels are an eligible use of 504 loan proceeds. This includes many different types of vessels that are used in businesses supported by our coastal waters: push boats and tug boats that move barges, commercial fishing boats, tour boats, water taxis, and ferries to name a few.

Economic Confidence and the 504 Loan Program

As the economy continues to improve, the prospects for businesses in search of financing are getting brighter. The Thomson Reuters/PayNet Small Business Lending Index registered 126.5 in April 2014, an 18% increase over April 2013. This means that businesses are confident in their long-term goals and are willing to take the financial risks associated with expansion. The good news is that banks are willing to take that risk as well.