504 Capital Corporation

U nderstanding the advantages and drawbacks of Small Business Administration (SBA) loans is vital for small business owners looking for financial assistance. CDC SBA loans offer various benefits, including lower interest rates and a guarantee from the SBA, but they also come with specific criteria and considerations. What Are SBA Loans? To put it simply, SBA loans are not directly provided by the Small Business Administration but rather facilitated through SBA-approved lenders, such as banks and microlending institutions. The SBA's involvement offers a safety net for lenders because if you default on your loan, the SBA will reimburse the lender for a portion of the debt. This reduces the risk for lenders and increases the likelihood of small businesses obtaining funding. CDC SBA loans are flexible and can range from as low as $500 to as high as $5.5 million, covering various business expenses like working capital, equipment, and inventory. Additionally, the SBA sets limits on the

A s entrepreneurs, you're well aware that turning your dreams into reality often requires more than just a brilliant idea – it demands resources, and that's where CDC small business finance comes into play. But navigating the world of business loans can feel like stepping into a labyrinth – numerous paths, each with its twists and turns, enticing promises, and hidden challenges. If you are someone who is looking for small business loans in Richmond , this blog will be your guiding light. Let's dive into each option and understand which one works best for you.  Term Loans Term loans offer a straightforward and widely-used financing solution for businesses aiming to fund growth initiatives. With a term loan, you receive a lump sum of money upfront, which you repay over a predetermined period along with the accrued interest.  Pros: Term loans provide immediate access to much-needed capital for your business ventures. They often allow you to borrow larger amounts than other l

A re you considering buying new equipment or revamping your current business infrastructure but lacking funds? Well, then SBA 504 loan shall be your first choice. Due to the low-interest rates and down payment for SBA loans , it has gained much popularity in the business community. Small Business Administration (SBA) funds small businesses by offering multiple loans. However, 504 is the best in SBA loans with minimal eligibility criteria, good loan amount, and longest down payment tenures. Despite having so many perks, there are still some cons to it. Here is everything you need to know about an SBA 504 Loan. What is the SBA 504 Loan? SBA 504 is a loan program designed to assist small businesses with long-term finances to grow their organizations. It provides loans for real estate allocation, equipment and machinery purchase, and upgrading existing real estate and other assets for business needs. It's a three-party loan involving a lender, payer, and Certified Development Comp

I f you have been researching SBA loans, it is likely that you have come across the phrase “Certified Development Company” or seen the acronym “CDC.” A Certified Development Company is a type of non-profit institution that partners with the SBA and lenders to provide financing to local small businesses. As an SBA CDC in Virginia specializing in 504 loans, 504 Capital is here to help pull back the curtain on CDCs and give you all the information you need to understand. SBA-Certified Development Companies The Small Business Administration (SBA) is a federal agency of the United States government that works to provide small businesses with the capital needed to be successful. The SBA does this by partnering with various banks and lending institutions to back loans. A Certified Development Company (CDC) is a non-profit institution that partners with the SBA to provide loans to businesses in their communities.  CDCs work with businesses to get them approved by the SBA for business loans t

If you are a small business owner, you may have many ideas to expand your business. But how to get funds for it? You may be thinking of availing loans from a commercial bank, but they are not flexible and can cause cash flow issues for your business. So, what can you do? Well, you can apply for SBA 504 loans. Why? SBA 504 loans are backed by the US Government and as SBA stands for Small Business Administration, they are designed to help small business owners specifically. What Are SBA 504 Loans? SBA 504 Loan is a government-supported loan for small businesses. It helps new and growing businesses acquire finance to expand, make capital improvements, and much more. These loans are issued by a Certified Development Company (CDC) and are overseen, authorized, and regulated by the SBA. But, can an SBA 504 loan be used to buy real estate? The answer is - Yes! 504 Capital Corporation is an SBA lender in Maryland and we let you buy real estate with SBA 504 loans. But there’s a requirement t