CDC/504 Loan Program

CDC/504 Loan Program

Program Name: CDC/504 Loan Program

Resource Type: Federal

State: USA

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.

Website: http://www.sba.gov/content/cdc504-loan-program