504 LOANS

SBA 504 loans can be used to buy, build or renovate commercial real estate properties, or to purchase equipment that has a life expectancy of 10+ years. In most cases, a 504 loan project requires a down payment of only 10 percent of the total project cost from the borrower, with the remaining amount split between a first mortgage provided by a commercial lender such as your local bank and a second mortgage provided by a certified development company, like Business Finance Group.

Community Loan Programs

Many small businesses find that a working capital loan or small equipment loan would allow them to expand their business, but their bank doesn’t make small loans or doesn’t make SBA 7(a) loans. BFG has the ability to make loans of up to $250,000. For more information, see our Community Loan Programs Flyer or contact Amy Rowan, Community Program Coordinator today at 703-667-5049 or arowan@businessfinancegroup.org

Veteran Loan Incentives

BFG is now a part of the ‘VetLoan Advantage’ Program,  a unique program created by NADCO, supported by the SBA, and designed to offer financial incentives to veterans who are seeking capital to start, grow or expand a business.

FAQS

What is the 504 Loan Program?

The 504 Loan Program is a U.S. Small Business Administration (SBA) funded program that provides financing to small and mid-sized businesses for the purchase of equipment and commercial real estate.

What can 504 loans be used for?

Business owners can use 504 loans for land and building purchases, new construction or renovation, leasehold improvements and purchases of heavy machinery, equipment and commercial vessels. They can also be used for soft costs such as title searches, attorney’s fees, appraisals, etc.

What advantages does the loan offer?

With low down payments and fixed, low, long-term interest rates, the 504 loan helps businesses retain working capital.

What types of businesses are eligible?

Businesses must be for-profit enterprises with a tangible net worth not to exceed $15 million and net profit after taxes of no more than $5 million during the previous two years. The loans are available to individual business owners or multiple owners partnering on a project. The 504 loan program serves a wide range of businesses.

What’s the maximum amount of a 504 loan?

$5.5 million depending on eligibility and the job creation, community development and economic development goals met by the project.

How does financing work?

Business Finance Group partners with lenders to provide up to 90 percent financing on a project. The partner lender typically provides 50 percent and Business Finance Group provides 40 percent. The borrower puts as little as 10 percent down, depending on the type of project.

“We value our partnership with all of our lending partners who have contributed to our success.”

Atlantic Union Bank
Bank of America, N.A.
BB&T
Eagle Bank
First Bank & Trust Company
Freedom Bank of Virginia
John Marshall Bank
M & T Bank
Old Line Bank
PNC Bank, N.A.
Village Bank
Towne Bank

Paul Kukla, VP PNC Bank

“BFG provides consistent great expertise and great service which gives me a level of comfort knowing that I have a great team supporting me and the customer. No matter the deal, no matter the stage in the process, they consistently go above and beyond expectations. I don’t know how you could find a better CDC partner than BFG; additionally, they are very nice people.

J.D. Zachry, Senior Vice President, Market Executive

My team’s partnership with Gerald Baroudi and BFG truly is paramount to our success as a commercial banking group in this community. Gerald values the client experience and represents what we, as community bankers, stand for as to meeting the needs of the business community. I can’t imagine going to market without having Gerald on our side!

Kathryn R. (Kathy) Speakman, Vice President and Commercial Loan Officer, National Capital Bank

They (Business Finance Group) are ultimate professionals and 504 experts, from the lender to their back office staff to the loan administrative group.  A top notch and well-managed team, they make closing loans easy.

Thomas Rea, President of Bank of The James, Shenandoah Valley Region

At Bank of The James, we pride ourselves on delivering excellent customer service and being able to put our customers in the best products for them. Business Finance Group shares those values and they have been a trusted partner to help us deliver the best to our customers. From a knowledgeable team that helps us brainstorm ways to help before the loan application, to the individuals who provide one on one support through loan underwriting, approval and closing. Top to bottom, Business Finance Group makes SBA 504 lending easy on the bank and a value add for our customers.

Tom Eagleson, Biomic Sciences

The BFG team guided us through the SBA504 loan process from start to finish keeping us informed on every step. Some thought we would not be able to complete the process in a 5 month period but with BFG we hit our deadlines and closed the loan on time. Thank you BFG for being our partner and helping us achieve our dreams!

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