SBA Loan

The 504 Loan Program is a good financing choice for franchises. Since the SBA has streamlined the approval process for franchisees, it is easier than ever to get the financing needed, especially when entrepreneurs open multiple franchises. The down payment needed for a commercial bank loan is often too high, usually 20% of the project cost, for most borrowers to accommodate. The capital outlay for franchisees typically includes franchise fees, royalties, marketing fees, and sometimes required products.

Effective January 1, 2017, the SBA has changed the process for how SBA lenders finance franchise borrowers. The SBA says the purpose of the revisions is to "streamline the procedures" for determining whether a business qualifies as a small business when applying for an SBA loan. This change speeds up the loan process while minimizing the resources required by the SBA.

Are you prepared to approach lenders for a business loan? One of the first things a potential lender will ask to see is your business plan. In fact, it will be impossible to secure most loans without one. Community Business Finance has touted the importance of a business plan before, but it is not just another hoop to jump through on the road to funding. It is a living document that shows investors, advisors and lenders the you are serious about making your business successful.

After 10 years in business, Community Business Finance has helped many different businesses with a variety of financial needs. However, one goal remains constant for each borrower: an affordable loan. We recently helped a business owner purchase a new facility that simply wasn't possible with a conventional loan.

August 4th was Startup Day Across America, when we celebrate entrepreneurs and connect them with elected officials to discuss the challenges that new companies face. Entrepreneurs are crucial to both local and national economic growth. For over 30 years, startups have created an average of 1.5 million jobs per year, and Texas ranks fifth highest on the Kauffman Index of Growth Entrepreneurship.

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.

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.

As Community Business Finance looks forward to another year of providing business loans for business dreams, we are kicking off 2016 by reviewing ten success stories made possible by our 504 Loan Program. The 504 Loan Program is historically underutilized, and we are passionate about providing access to this type of loan, as well as educating borrowers on the benefits that 504 loans can provide.

We conclude our two-part series with five different borrowers that each used a 504 loan to meet their unique business needs.

Community Business Finance looks forward to another year of providing business loans for business dreams. We want to kick off 2016 by reviewing ten success stories made possible by our 504 Loan Program. The 504 Loan Program is historically underutilized, and we are passionate about providing access to this type of loan, as well as educating borrowers on the benefits that 504 loans can provide.

In this two-part series we begin with five different businesses that each used a 504 loan to meet their unique financial needs.