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Certified Development
Company (504) Loans

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Do you need a building or land? The SBA loan program that can help is the Certified Development Company (504) loan program. A CDC is a nonprofit company that works with the SBA to provide economic development in a specific community or region. There are approximately 300 CDCs in the United States. The CDC must create or keep one job for every $35,000 provided by the SBA.

To receive a CDC (504) loan, the business can qualify as small if it meets the size standards established by the SBA or does not have a net worth greater than $6 million and has made an average income less than $2 million after taxes in the previous two years. The business cannot be speculative or investing in rental real estate.

This loan guarantee can be used to:

  • Purchase land, buildings, infrastructure and improvements
  • Construct new buildings
  • Modernize, improve or convert existing buildings
  • To purchase long term machinery or equipment

Features:

  • Maturities of 10 and 20 years are available
  • Assets being financed are used as collateral
  • Personal guarantees of owners are required.

To find your local CDC information, go to http://www.sbaonline.sba.gov/regions/states/

Need more information about the (504) program? http://www.sba.gov/financing/frcdc504.html

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