CDC/504 Loans

A Certified Development Company (CDC) is a nonprofit corporation set up to contribute to the economic development of its community. CDCs are located nationwide and operate primarily in their state of incorporation (Area of Operation). CDCs work with SBA and private-sector lenders to provide financing to small businesses through the CDC/504 Loan Program, which provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.

Typically, a 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 total cost;

  • A contribution from the borrower of at least 10 percent equity.

View the resources below for more information on the CDC/504 lending process.

  • Approval-Authorization

    Use the resources below for information on the approval and authorization steps of the CDC/504 lending process.

  • Closing

    The following resources provide 504 closing information for lenders.

  • Servicing

    View the resources below from SBA and the Commercial Loan Service Center for information on servicing CDC/504 loans.

  • Liquidation

    The Commercial Loan Servicing Centers are responsible for the oversight on any new 503/504 liquidation cases. As part of the oversight responsibilities the Centers will work closely with the...

  • Litigation

    See the CDC/504 litigation plan below for information on the litigation process.

  • 504 Debt Refinancing Program

    Describes SBA's 504 Debt Refinancing program.