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The SBA's CDC/504 Loan Program



What is the SBA’s CDC/504 Loan Program?

The CDC/504 Loan Program is one of the several loan programs offered by the SBA that primarily provides long-term, fixed rate loans. These loans are used for acquiring major fixed assets for expansion or modernization. The funding comes from both, a bank or another lender and a certified development company (CDC). The typical breakdown of the loan is as follows: 50% from the bank (lender), 40% from the CDC and 10% from the business owner.



What is a Certified Development Company (CDC)?

A Certified Development Company (CDC) is a private, nonprofit organization that has been certified by the SBA to help provide financial aid to small businesses and contribute to the economic growth of its community. The CDC usually finances about 40% of any CDC/504 loans given to small businesses.