Save More Money with the 504 Loan Program

For businesses seeking property or equipment loans, finding the lowest interest rate can seem like the best move. However, bear in mind that the interest rate is only one aspect of your loan contract, and it doesn't mean you will pay the least amount of money over the life of the loan. Therefore, the loan with the lowest interest rate might not actually be the best loan for your business. In fact, Community Business Finance's 504 Loan Program has many advantages over a conventional loan.

504 Loans vs. Conventional Loans

Community Business Finance's 504 Loan Program has many advantages over a conventional loan. 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. Let's examine the differences between conventional loans and 504 loans.

Choosing the Right CDC Makes a Difference

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.

After 7 Years, Interest Rates Are on the Rise

The Federal Reserve finally raised its key interest rate in December 2015. The rate hike is a small one, but was widely expected. The Federal Reserve put interest rates near zero during the financial crisis seven years ago, in December 2008, to help stimulate the economy and boost the housing market.

Top 10 Features of Our Website

The celebration continues for Community Business Finance's 10th anniversary. As our mission is to promote job creation in our communities by providing the best available financing terms to the businesses we serve, we are dedicated to lender and borrower education. Therefore, our website features easier and faster access to the information you need about our 504 Loan Program.

The Importance of the 504 Loan Program

Last week we discussed the importance of the SBA Guaranteed Loan Programs in light of the recent 7(a) funding crisis. Without access to 7(a) loans, many small businesses would be simply unable to find suitable financing. There are some valuable lessons to be learned from this latest emergency.

Don’t Get Caught Unprepared for Higher Interest Rates

As we celebrate our 10th anniversary at Community Business Finance, we have been reminiscing about the last decade in small business finance. Never before in recent history have interest rates been so low for so long. Back in 2008 when interest rates were first lowered, it seemed to be a short-term way to boost a sagging economy; now it feels like the norm. The harsh reality is that interest rates will rise again, and many business owners will be caught unprepared.

Not All Certified Development Corporations Are the Same

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.

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