CDC (Certified Development Company) is a private corporation. It is a non-profit organization, which contributes to economic development of its community. They work with SBA and private sector lenders in order to provide financing for small businesses. CDC gave a new loan program called 504 loan program which is a long term financing tool for economic development in the community. This program provides financing for long term, fixed rate financing to gain major fixed assets for expansion and to modernize.

The 504 loan features

  • The 504 loan covers up to 50 percent of the cost of the project and can be secured from a private sector lender with a senior lien.
  • A loan secured from CDC will be backed by a 100 percent SBA-guaranteed debenture with a junior lien which covers 40 percent of the total cost.

Loan eligibility
This loan program is suitable for companies that operate business by the standards of SBA. Under the 504 Program, the business companies qualify as small if they do not have a tangible net worth of $7.5 million and does not have an average net income of $2.5 million after taxes for the next two years.

This loan program provides maximum $1.5 million for the goal – creation of jobs or community development. It changes by the size of company.

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