For businesses seeking property or equipment loans, finding the lowest interest rate can seem like the best move. However, bear in mind that the interest rate is only one aspect of your loan contract, and it doesn't mean you will pay the least amount of money over the life of the loan. Therefore, the loan with the lowest interest rate might not actually be the best loan for your business. In fact, Community Business Finance's 504 Loan Program has many advantages over a conventional loan.
Community Business Finance's 504 Loan Program has many advantages over a conventional loan. For businesses seeking property or equipment loans, finding the lowest interest rate seems like the best move. However, bear in mind that the interest rate is only one aspect of your loan contract. Therefore, the loan with the lowest interest rate might not actually be the best loan for your business. Let's examine the differences between conventional loans and 504 loans.
While Community Business Finance celebrates our 10th anniversary this year, we want to share the top ten reasons to use the 504 Loan Program. 504 loans provide businesses with financing for major fixed assets, such as real estate and equipment, to promote economic growth.
Last week we discussed the importance of the SBA Guaranteed Loan Programs in light of the recent 7(a) funding crisis. Without access to 7(a) loans, many small businesses would be simply unable to find suitable financing. There are some valuable lessons to be learned from this latest emergency.
Good news for SBA lenders and borrowers– the SBA 7(a) Loan Program is back in business. On July 23rd the program reached its loan guaranty limit of $18.75 billion. Lending was suspended until the new fiscal year begins on October 1st. Applications were put on a wait list for approval until funds were available again. Fortunately, Congress voted to raise the cap on 7(a) loans by $4.75 billion to $23.5 billion, which President Obama signed into law on July 28th.
Community Business Finance has helped over 200 small businesses acquire the financing they need through SBA loans. SBA loan programs can provide funds for working capital, buying commercial property, financing a start-up venture, and purchasing new machinery or equipment, including commercial vessels and mobile cranes.
Bourjois Abboud's business was booming. While this growth was exciting, he found it difficult for his facility's size to keep pace with the increased demands of his clientele. Looking at industry projections, Mr. Abboud realized he simply needed more space.
While some might believe that success is a matter of luck, restaurateur Tracy Vaught and her husband Hugo Ortega feel differently. Their formula for success: foresight, vision, conservative growth and hard work.