Win-Win! SBA Loans Benefit Lenders Too


In this article, we are focusing on how the SBA 504 program adds value to lending institutions by positively impacting risk and return.


Top 3 Value-Adds for SBA 504 Lenders

Value-Add #3:  The CDC’s relationship helps diversify the loan portfolio.

By leveraging your relationship with a certified development company like Community Business Finance, your team can lean on the CDC’s SBA 504 experience and guidance to finance a greater variety of industries, large real estate transactions, and a wide range of property types.

Value-Add #2:  The unique 504 Loan features reduce credit risk.

The lender’s standard 50% loan-to-value 1st lien collateral position minimizes collateral exposure for the lender.  Furthermore, SBA fixed rates ensure more predictable long-term debt service coverage up to the 25-year life of the loan.

Value-Add #1:  Aggressive loan terms and below-market interest rates help win and retain customers.

90% financing is appealing to borrowers looking to conserve working capital or trying to maximize borrowing power to acquire their dream building.  A low-interest rate locked in for the life of the loan positions the bank to offer the best terms without sacrificing the bank’s yield.


Partnering with Community Business Finance means having the experience, efficiency, and relationships to create a success story for your borrowers. Contact us today! A Business Lending Consultant is ready to help.