Just like no two businesses are exactly the same, every Certified Development Corporation is different. A CDC is a nonprofit organization certified by the SBA to provide 504 loans to small businesses. Under the 504 Loan Program, a CDC partners with another lender to share the total financing for a loan. Both partners make a loan to a qualifying small business. Therefore, choosing the right CDC can make a huge difference in your loan process experience.
For over 10 years, 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, giving our loan experts the experience and knowledge to assist you with the 504 Loan Program and increase your chances of a successful loan process.
We have identified three mistakes that borrowers make during the application process and offer a few tips to help you avoid them.
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.
Excellent news for small business owners from the SBA! The 504 Debt Refinancing Program begins this Friday, June 24th. The 504 Loan Program was created to provide long-term financing to small businesses for the purchase or improvement of land, buildings and major equipment. The Small Business Jobs Act of 2010 authorized the use of the 504 Loan Program to refinance debt where there was no expansion of the business. However, this program expired on September 27, 2012, so news that the SBA reauthorized the Debt Refinancing Program is very welcome indeed.
Are you interested in the 504 Loan Program but unsure about what is involved? Community Business Finance's four-step loan process makes getting a 504 loan easier to understand. Our loan experts will navigate the entire process, from application through final funding, to make it as painless as possible for the borrower.
In part 2, we explain closing and final funding. For even more information, visit our 504 School.
Are you interested in the 504 Loan Program but unsure about what is involved? Community Business Finance's four-step loan process makes getting a 504 loan easier to understand. Our loan experts will navigate the entire process, from application through final funding, to make it as painless as possible for the borrower.
In part 1, we explain the application and approval process and initial funding. For even more information, visit our 504 School.
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.
Winston Churchill said notably, "Attitude is a little thing that makes a big difference." Too often, business owners approach lenders with an indifferent attitude about their company. When applying for any business loan, you should present your best qualities to lenders. In other words, you should sell lenders on the idea that your business is a great candidate for a loan. After all, no one knows your business better than you do!
Many lenders may not be aware they are able to offer SBA loans, and these loans are beneficial to both the lender and the borrower. Community Business Finance presents three great reasons that community lenders can and should offer the 504 Loan Program.
Community Business Finance prides itself on borrower and lender education. In the past, we have exposed many myths surrounding SBA loans in general and the 504 Loan Program specifically. For quick reference we have gathered three common myths together to uncover the truth about a lending program that Community Business Finance feels strongly supports small businesses and allows them to achieve their dreams.
"All truths are easy to understand once they are discovered; the point is to discover them." - Galileo Galilei.
