Community Business Finance is dedicated to providing business loans for business dreams. Partnering with Community Business Finance means having the experience, efficiency, and relationships to create a success story for your business.




The Right Partner

504 Benefits for Business Owners

10% Down Payment – Less cash down will preserve working capital for business growth.

Long-Term 25-year Amortization – Payments stretched out longer will provide more cash to help cover operating expenses and freedom to expand.

Competitive Fixed Rate Financing – A locked interest rate for the long-term provides security from fluctuations in markets and Federal Reserve rate fluctuations.

Greater Access to Capital – Expanding or start-up businesses relying upon tighter cash flow or projections are more likely to be approved due to lower lender risk.

Single/Special-Purpose Type Properties Allowed – Car washes, daycares, restaurants, hotels, RV parks, mini-storage, and entertainment complexes are all acceptable and eligible.

All-Inclusive Funding – Closing costs, lender and SBA fees, interim interest, and other real estate-related expenses may be rolled into the project financing

Why Partner with Us?


We have the Experience

Accomplishments since 2005, include:


Loans Booked

$500 Million+

Projects Funded


Jobs Created in Texas and Louisiana

3 Major

Community Partners:

SCORE, local SBDCs, and the Greater Houston Business Procurement Forum


We have the Efficiency

Community Business Finance has invested in the technology.

Digital Documentation
We ensure the collection and digital transfer of required application documentation is simple and secure during the application process.

Responsive & Reliable Loan Professionals
We quickly obtain the required information and properly structure the loan to comply with SBA guidelines from the beginning to save valuable time.


We have the Relationships

Community Business Finance has relationships with many smaller and larger lenders.

Economic Development
Our local connections with accounting, banking, legal, and real estate professionals lead to opportunities for business expansion, construction of new buildings, job creation, and prosperity in our communities.

Entrepreneur Support
Our partnerships with community, regional, and national lenders provide multiple funding sources to support speculative startup businesses.


We are the Right Partner

Community Business Finance works with all banks and lenders.

Communication & Education
We establish clear expectations with lenders and business owners upfront.

We value follow-up and creativity.

We regularly train our staff and lending partners about the 504 loan program and continuously evaluate our processing methods.

Engagement & Reciprocation
We are available anytime to discuss the challenges and merits of a borrowing opportunity.

We are committed to identifying business owners who need a loan to finance a building or heavy equipment.

We can refer an experienced conventional lending partner to participate with us if the current bank is not interested in the SBA 504 advantages.

The 504 Loan Program was established by Congress in 1987 to promote economic development in the trade area of a certified development company (CDC). The program's goals are met primarily through projects that create job growth or job retention in local communities. By distributing the amount needed to finance a project between the three parties, lenders are exposed to less risk and are more likely to approve the loan.

How 504 Works

Business Owner invests
as little as
of the total funds for your dream project
Lender provides permanent financing of at least
of the total funds for your dream project
Community Business Finance delivers up to
of the total funds for your dream project
Business Dream

Eligible Use of Funds

A business can use proceeds from the 504 Loan Program for direct expenditures the following purposes:


The value of the free-and-clear land applied towards the borrower's equity is based on the actual cost if acquired within the last two years, or at the appraised fair market value if owned for more than two years.

Site Improvements

Grading, paving, landscaping, curb, and gutters up to 5% of the total project costs can be included in the project financing.

Purchase of One or More Existing Buildings

Your business must occupy at least 51% of the total square footage of the four walls of the project building(s).

Conversion, Expansion, or Renovation of One or More Existing Buildings

Note that the cost of improving a tenant space to be leased out to a third-party cannot be included in the 504 loan financing.

Construction of One or More New Buildings

Your business must occupy at least 60% of the building, with projections indicating that your business will need some additional space within 3 years and a reasonable intent that the business will occupy 80% of total space within 10 years.

A contingency reserve for construction cost overruns, which cannot exceed 10% of construction costs, may be included in the calculation of total project cost for the purpose of a 504 loan application.

Acquire and Install Heavy Machinery

These assets must have a useful life of at least 10 years and be at a fixed location. Furniture, fixtures, and equipment with a useful life of less than 10 years can be included in mixed-use projects where these are essential to and a minor part of the total project cost.

Refinance of Eligible Real Estate and Equipment with or without Expansion

Notes on unreasonable terms can be refinanced to improve interest rates, extend amortization, renovate/expand property, or provide funding for eligible business expenses.

Professional Fees Directly Attributable and Essential to the Project

Title insurance, architect & engineering fees, environmental studies, appraisal reports, and land surveys can be financed into the project.

Repayment of Interim Financing Costs

Points charged or interest paid to the lender during the interim or construction phase of the project can be included in the financing.

Loan funds may not be used for mortgage broker fees, bridge loans during the construction period, business inventory, rolling stock (e.g., trucks) or refinancing of existing debt of the business.


Community Business Finance's 504 Loan Program can provide financing for most types of businesses. There are very few business types that are not eligible.

Eligible Businesses

Business must be a legal entity - corporation, partnership, sole proprietor, limited liability company

Owners must be U.S. citizens or legal permanent residents

Business must be located in the United States

Net worth under $15 million and net profits under $5 million (2-year average)

Job creation/retention or public policy goals must be achieved through the financing.

Ineligible Businesses

Non-profit businesses

Businesses engaged in lending, a passive holder of real estate and/or personal property or a life insurance company

Has restriction on patronage

Is a government-owned entity (exception for Native American tribes)

Engaged in promoting religion

Consumer and marketing cooperatives (producer cooperatives are eligible)

Engaged in loan packaging

Has associates who are incarcerated, on probation, on parole or have been indicted for a felony

Equity interest by lender, CDC or associates in applicant concern

Provides prurient sexual material

Has previously defaulted on a federal loan

Engaged in political or lobbying activities

Speculative businesses

What You Need

Applying for a 504 loan requires forms and documentation just like any commercial loan. The lender will have the same expectations and you should be prepared to describe your business, how you will use the loan proceeds, and establish an ability to repay the loan.

Startups are companies in operation for less than 24 months. Expanding businesses are companies that have been operating for at least two years, but are relying on projections to service the proposed new loans. Companies in these situations may have additional application requirements.

You can increase your chances of a successful application process by providing the following information to your chosen lender:

Project Definition

The applicant should be able to articulate the need for the funds, present a well-defined budget of costs, and provide source documents for the uses of the funding (purchase agreements, construction estimates, bids for equipment, copies of notes, etc.).

Business Plan for Expansion or Startup Businesses

This document should describe your type of business, length of time in business, annual sales, and the number of employees. This is where you explain why you need a loan and what you will do with the money. You should demonstrate your expertise in your field of business, and your ability to succeed. Visit our 504 School and scroll to the bottom to read "How to Create a Business Plan".

Financial Projections for Expansion or Startup Businesses

This document should be part of the business plan, establish an ability to repay the loan, and allow the lender to assess risk.  The proforma should project detailed revenues and expenses on a month-to-month basis for at least a 2-year period from the time operations commence.  The revenues and expenses should be justified with assumptions that are justified based on experience and research.

Business Financial Statements

This should include complete financial statements for the past three years, including balance sheets and profit and loss statements. You should also include current interim financial statements, as well as signed business federal income tax returns for the previous three years.

Credit Rating Report

You should be aware of your credit rating to be sure there are no surprises, and you can correct any mistakes or problems before the loan application. A proven loan repayment history works in your favor.

Personal Financial Statements

For all SBA loans, personal guarantees are required from everyone owning 20% or more of the business. Therefore, financial statements for these individuals must be included. They should list all personal assets, liabilities, and monthly payments. They should also include personal federal income tax returns for the previous three years.


List all tangible assets that you are willing to put up to secure the loan. Collateral can be usable assets in the business as well as personal assets. Adequate collateral is required on all SBA loans if they are available.

Legal Documents
  • Business licenses and registrations required for you to conduct business

  • Articles of Incorporation

  • Copies of contracts you have with any third parties

  • Franchise agreements

  • Commercial leases

Buying an Existing Business

You will need to provide the following for the business being purchased:

  • Current balance sheet and profit and loss statement
  • Previous two years' federal income tax returns
  • Terms of the sale, including asking price and list of inventory, machinery or equipment, and furniture

504 loan can only finance capital assets, but goodwill and working capital may be financed with a companion SBA 7(a) loan from your lender.

Tell us Your Dream!

We are dedicated to providing business loans for business dreams. Please contact us and tell us about your dream. We need general information about your project to understand your loan options and discuss making your dream a reality.