Exposing the Myth: Loans Have Too Many Fees

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.

Exposing the Myth: 504 Loans Take Too Long

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.

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.

Exposing the Myth: SBA 504 Loans Have Too Many Fees

Just like the myths that SBA 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.

Exposing the Myth: SBA 504 Loans Have Too Much Paperwork

When you think of government agencies, such as the SBA, you probably imagine mountains of paperwork. In fact, many lenders actively avoid promoting SBA 504 loans from fear of endless forms. Fear not! The SBA has taken great strides in reducing the number of forms needed to apply for a loan.

Exposing the Myth: SBA 504 Loans Take Too Long

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.

5 Reasons an SBA 504 Loan Should Be Your First Choice

Quite often, when a company needs a business loan, their first step is to contact the lender where they do all their business banking. They inquire about a conventional or traditional commercial loan. As the name suggests, this is the most common type of commercial loan. The company feels comfortable using a familiar lender and receiving a familiar loan. However, quite as often, this is not the right loan. There is a better way: The SBA 504 loan program.

What is a Certified Development Corporation?

We have previously discussed the SBA 504 loan program and how it was created to help small businesses get the financing they need to promote job creation and retention. The Small Business Administration established the Certified Development Corporation Program to finance these loans, since the SBA does not loan money directly.

Community Business Finance and the 504 Program: Creating Partnerships that Benefit Houston Businesses

Community Business Finance's mission is to encourage economic development in the SBA Houston District and throughout Texas. To accomplish this we actively promote the SBA 504 Program to lenders and businesses. We want to foster lender-CDC partnerships for the benefit of Houston businesses.

Finance Your Start-up with an SBA Loan

Finding financing for your 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. Community Business Finance can help your start-up with SBA Guaranteed Loan Programs.

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