IE Business Daily Business news for the Inland Empire.
When Inland Empire business owners start looking at ways to expand operations, by buying, constructing, or improving their building, there’s no need to apply for a Small Business Administration (SBA) business loan at an out-of-town lending firm. Instead, they can apply at a local firm that specializes in facilitating the SBA 504 loan transaction. The SBA 504 loan program is the most affordable financing program for the acquisition of real estate or large equipment.
The best firm to apply through is a Certified Development Company (CDC). According to SBA.gov, CDCs are nonprofit corporations that are certified and regulated by the SBA to work with participating lenders on providing financing to small businesses. In the Inland Empire, Enterprise Funding in Redlands is the most experienced local CDC resource.
“There are only a handful of CDCs in Southern California, and even fewer in the Inland Empire,” said Jeff Sceranka, president of Enterprise Funding. “We have worked with 93 different banks, all of which are located in Southern California, so our access to lenders will provide our borrowers with the best service at the lowest rates.”
Sceranka also stated that many CDCs are merely transactional. “They give paperwork, fill it out and process it. But if their applicants aren’t acceptable to the first lender that they approach, many firms will do little to help them.” For business owners who are eager to obtain a SBA 504 loan, he says, the first application denial can feel like the end of the road.
Enterprise Funding offers the opposite experience, by presenting business owners options for improving their 504 loan applications. “We try to make the process more personal,” he said. “Once we do their application, we know what we have to work on to make them more acceptable or ‘bankable.’” They may refer applicants to a partner that provides credit counseling, or help them work on becoming more profitable so that the numbers on their applications look more appealing. “If they’re not making enough gross revenue,” he said, “we know consultants who can help with that.”
Another advantage the local CDC provides is free interest rate comparisons. “We shop the banks for free,” Sceranka said, “and then we package the loan for free. They don’t pay us until the loan is approved and funded.” Business owners use the funding to purchase new buildings, equipment or other fixed assets. The loans are not designed to purchase inventory or get fast capital.
To apply for a 504 business loan with the best, local CDC in the Inland Empire, contact Enterprise Funding at (909) 792-3803 ext. 24.
