Often there are real obstacles to getting conventional financing that your business needs, especially if you are a start-up. Start-ups do not have the financial history needed for a traditional lender to accurately assess the loan risk. Sometimes, a new business is so unique that the building they need is considered a special purpose property that can deter lenders. This is where Community Business Finance's 504 Loan Program can make a real difference.
Community Business Finance provides our clients with the best possible service through our depth of knowledge and a desire for innovation in the lending process. In November 2013, Community Business Finance launched our mobile website designed by ProVim. This allows borrowers and lending partners to get quick estimates for our 504 Loan Program from any smart phone.
When you think of government agencies, such as the SBA, you probably imagine mountains of paperwork. In fact, many lenders actively avoid promoting 504 loans from fear of endless forms. You should know that the SBA has taken great strides in reducing the number of forms needed to apply for a loan.
Just like the myths that 504 loans have too much paperwork and take too long to process, you have probably heard that 504 loans have too many fees. This myth most likely originated from the 7(a) program's tiered fee structure and has been applied to all SBA loan programs. Let's examine the facts about 504 loan fees.
There is a prevailing myth that an SBA 504 loan takes too long to prepare and process. While it is true that in the past the SBA was bogged down with laborious paperwork and sluggish processes, many things have changed. The SBA has worked intently to speed up their processing times and reduce their paperwork. The agency has invested in the technology to become more efficient and responsive. They really do want to make it easier to provide borrowers with the capital they need to promote economic growth.
Previously on our blog, we have detailed the steps in preparing for a 504 loan. We identified the crucial information needed for a successful application and outlined the elements of a solid business plan. However, you might not know that there is an extensive network of Small Business Development Centers eager to assist you in gathering and understanding the information necessary for our 504 Loan Program. Even more exciting, consulting services are free of charge and training services cost very little.
Community Business Finance has a proven history of innovation in our lending process. We strive to make our 504 Loan Program faster and easier, providing our clients with the best service possible. We are eager to share our new technology with you. ProVim has designed a mobile website that allows our lending partners to get quick estimates for our 504 Loan Program.
We are pleased to let Tim Heidenreich from ProVim describe this new addition to our lending process:
Community Business Finance's 504 Loan Program can make a real difference to your business. Take, for example, being a start-up business. Start-ups do not have the financial history needed for a traditional lender to accurately assess the loan risk. With Community Business Finance's 504 Loan Program, start-ups can still get the financing they need.
Roger DeGegori's passion for aquariums led him to move his business, Fish Gallery, to a busier location with a long lease contract. "I really thought my new lease location was the cat's meow, and I was hesitant about owning a location. I was 100% wrong," said Roger.
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.