SBA 504 Loans

Certified Development Company (CDC)

The 504 program urpose is to provide long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. In general, a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a secondary lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower. he typical client is a small businesse requiring "brick and mortar" financing. It is delivered through certified development companies (private, nonprofitcorporations set up to contribute to the economic development of their communities or regions).

SBA 7a Loan
SBA 504 Loan