SBA 504 Loan Program
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).
