21 Jan CDC/504 Loan Program
Program Name: CDC/504 Loan Program
Resource Type: Federal
Agency: Program Source: Loan
Description: Long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization, e.g. acquisition of land, existing buildings, construction of new buildings, and purchase of machinery. Funds flow through CDC’s, non-profits that work with the SBA. Usually SBA funds 40%, a CDC lender 50%, and the business owner 10% of a project. The maximum loan amount is usually $5 million, and a requirement of one new job created per $65,000 of loan guarantee.