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.
Most business owners will eventually confront the issue of whether to purchase or lease their office space. It is important to remember that by not owning your business property, you are forfeiting substantial financial benefits that could improve your bottom line. Now is the time to consider property ownership, and Community Business Finance's 504 Loan Program offers a way for businesses to purchase commercial property with as little as a 10% down payment and a below-market fixed interest rate.
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.
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.
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?
Community Business Finance is committed to providing business loans for business dreams. It is our mission to promote job creation in our communities by providing the best available financing terms to the businesses we serve. Therefore, we are excited to announce the launch of our new website! We have added new features that provide easier and faster access to the information you need about our 504 Loan Program.
Rising Interest Rates and the 504 Loan Program
After years of historic lows, interest rates are finally on the rise. Chairman of the Federal Reserve Board Ben Bernanke has said that the Federal Reserve would begin to taper their bond-buying stimulus program this year. The central bank launched the program in 2008 to help lower long-term interest rates and stimulate economic activity.
Everyone, it seems, is talking about the historically low interest rates available today. What does this mean for your business? If you are looking to invest in your business property or equipment, it is very good news.
There are two different types of loan rates: Fixed and variable (or adjustable). With a variable-rate loan, the interest rate fluctuates along with changes in the market interest rates. This means your monthly payments will vary, either rising or falling according to current market rates.