CDC/504 Program

The CDC/504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.

A Certified Development Company (CDC) is a private, nonprofit corporation which is set up to contribute to economic development within its community. CDCs work with SBA and private sector lenders to provide financing to small businesses, which accomplishes the goal of community economic development. Typically, a CDC/504 project includes:

  • A loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost

  • A loan secured from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the project cost

  • A contribution from the borrower of at least 10 percent of the project cost (equity)

This type of setup means that 100% of the project cost is covered either by contribution of equity by the borrower, or the senior or junior lien.




Get the Info That Matters Most to You With SBA Direct

Find information on:

(Select your topics)

Get Local Assistance Right in Your Area

Counseling, mentoring, and training from an SBA District Office, SCORE Chapter, Small Biz Development Center or Women’s Biz Center in your area.

FIND RESOURCES

join the community


  No relevant media for this area.

Success_Story-TeresaMWard.JPG
At a Manhattan ceremony in celebration of presidentially declared National Small Business Week 2009the New York District Office of the U.S. Small...
What did John F. Kennedy, Jr., Hillary Rodham Clinton, Ed Koch, Richard Daley and Jerry Brown have in common other than politics? The answer is, at...
Mothers play a vital role in the life of their children, but what is a mother to do when she can’t take away her own child’s pain and...