CDC 504 Liquidation Plan

A 504 Liquidation Plan is a CDC's written plan outlining the actions it intends to take to maximize recovery on a specific 504 Loan.

All CDCs should prepare a Liquidation Plan within 30 calendar days of Debenture purchase regardless of whether the CDC or SBA Loan Center is primarily responsible for handling the liquidation.

A Liquidation Plan for a 504 Loan should have a copy of the demand letter attached to it when submitted to the appropriate SBA Commercial Loan Servicing Center.