SBA Loans

Paulo Coelho wrote, "Life has many ways of testing a person's will, either by having nothing happen at all or by having everything happen all at once." While every business owner dreams of a successful enterprise, rapid growth can feel like everything is happening all at once, and can actually create obstacles to getting the financing a business needs. Community Business Finance's 504 Loan Program works within your company's financial framework to successfully deal with these roadblocks.

The recent floods in Houston and throughout Texas devastated many communities and the businesses that support them. However, in the words of Will Rogers, "Texas is a great state. No matter what happens to it...it just keeps rolling along!"

As Texans begin to repair and rebuild from the damaging forces of Mother Nature, Community Business Finance is encouraging business owners to explore the benefits of the 504 Loan Program. 504 loans allow you to construct a new building or renovate an existing structure. You can also purchase machinery and equipment.

As a dynamic resource for the business community, we have an interest in helping your business succeed. Community Business Finance is involved with borrower education as part of our economic development mission to help businesses grow and, in turn, create jobs in their communities.

I am often asked why the SBA requires personal guarantors for 504 loans. There are several reasons for this. First understand that personal guarantees are required on all SBA loans. A personal guarantee is not a sign that your business is unhealthy or risky. Even businesses with a solid performance history and an excellent credit rating will be required to sign personal guarantees.

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.

Have you ever wondered why only Certified Development Corporations (CDCs) can offer the 504 Loan Program? The 504 Loan Program 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.

In the world of business financing, SBA 504 loans do not get the same attention as SBA 7(a) loans. This four-part series is intended to help you better understand the uses and benefits of a 504 loan.

Step-by-Step Process

Community Business Finance works closely with you during the 504 Loan Program process. The following outlines the steps and how we will assist you:

In the world of business financing, SBA 504 loans do not get the same attention as SBA 7(a) loans. This four-part series is intended to help you better understand the uses and benefits of a 504 loan.

Eligible Use of Proceeds

A small business can use proceeds from Community Business Finance's 504 Loan Program for direct expenditures to acquire, construct or convert a facility for company expansion, such as: