Community Business Finance’s 504 Loan Program: Part 4

In the world of business financing, SBA 504 loans do not get the same attention as SBA 7(a) loans. This four-part series is intended to help you better understand the uses and benefits of a 504 loan.

Step-by-Step Process

Community Business Finance works closely with you during the 504 Loan Program process. The following outlines the steps and how we will assist you:

Community Business Finance’s 504 Loan Program: Part 3

In the world of business financing, SBA 504 loans do not get the same attention as SBA 7(a) loans. This four-part series is intended to help you better understand the uses and benefits of a 504 loan.

Eligible Use of Proceeds

A small business can use proceeds from Community Business Finance's 504 Loan Program for direct expenditures to acquire, construct or convert a facility for company expansion, such as: 

Community Business Finance’s 504 Loan Program: Part 1

In the world of business financing, SBA 504 loans do not get the same attention as SBA 7(a) loans. This four-part series is intended to help you better understand the uses and benefits of a 504 loan.

Congress established the 504 Loan Program in 1987 to promote economic development in a Certified Development Corporation's trade area. The program goals are met primarily through projects that create job growth in local communities.

Start-up Financing Through SBA Loans

Financing a new business can be daunting. Start-up companies don't have the financial history that lenders require during the loan process. Banks are conservative lenders and may not be willing to take a risk on a new company. The risk for the lender is lessened with a guarantor, and Community Business Finance will help your start-up with SBA Guaranteed Loan Programs.

Purchasing Real Estate with SBA 504 Loans versus 7(a) Loans

At Community Business Finance, we offer both popular SBA loan guarantee programs: 504 and 7(a). While both programs require in depth business plans, they are designed for different business needs, with different goals in mind. The 504 loan is intended for economic development; therefore, its use is restricted to real estate and fixed asset purchases, as these promote job creation. The 7(a) loan can be used for working capital for almost any business expense.

How Big is Small Business?

Did you know that out of the 6 million US businesses with employees, over 98% are defined as a small business? In fact, small businesses are responsible for 60% to 80% of all new jobs created in America. Small businesses are so important that the federal government offers the 504 Loan Program designed to help grow small businesses. What exactly, then, defines a small business?

Rising Interest Rates: 504 Loans Are Still the Best Choice

As you have probably heard by now, interest rates are on the rise. As debenture rates rise, the interest rates on SBA loans also rise. For businesses seeking property or equipment loans, finding the lowest interest rate seems like the best move. However, bear in mind that the interest rate is only one aspect of your loan contract. Therefore, the loan with the lowest interest rate might not actually be the best loan for your business.

Pages