Details | Certified Development Company Loan Program


Funder

 

U.S. Small Business Administration

Implementer

 

Various Banks

Description

 

The 504 Certified Development Company Loan Program provides small companies with net worth under $15 million or net profits after taxes under $5 million with long-term, fixed rate, subordinate mortgage financing for the acquisition and/or renovation of capital assets including land, buildings, equipment, and soft costs such as title insurance and appraisals. It has a unique structure in which a lender is responsible for financing approximately 50 percent of the project costs and receives a first lien on the project assets, but no SBA guaranty while the CDC--backed by a 100 percent SBA-guaranteed debenture finances up to 40 percent of the project costs secured with a junior lien. The borrower provides the balance of the project costs. SBA 504 Certified Development Companies (CDC) provides these mortgages.

Funding guidance

 

Applications open

 

None

Applications close

 

None

Type

 

Secured Loan

Category

 

Financing

Territory

 

United States

Applicant type

 

For Profit

Project

 

Production Process Improvement

Sector

 

Commercial

Sub-sector

 

City  |  Commercial  |  County  |  Data Center  |  Education  |  Health Care  |  Hospitatlity  |  Industrial  |  Multi Family  |  Retail  |  Single Family  |  Special Districts  |  State

Sustainability

 

Energy Efficiency for Processes  |  Water Use Reduction

Small business

 

True

Disadvantaged communities

 

False

Cost sharing amount

 

None

Cost sharing percent

 

None

Cost sharing note

 

Minimum repayment years

 

None

Maximum repayment years

 

20

Interest rate comment

 

Pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues.

Incentive