Certified Development Company (CDC) / 504 Loans
A Certified Development Company (CDC) is a nonprofit organization that helps to empower, stabilize and revitalize local communities. These organizations are set up to contribute to the economic development within its community. A CDC works with the Small Business Association (SBA) to provide financing through the CDC/504 Loan Program. The 504 Loan provides longer term financing for businesses that are planning to expand.
A 504 loan can be used for the following purchases:
- Commercial real estate
- New building or equipment acquisitions
- Construction of additional facilities or renovating/converting existing facilities
This loan encourages economic growth and job creation through requirements to meet certain local economic objectives, such as revitalization and redevelopment, income generation or business development.
504 Loans feature the following:
- Lower down payments
- Fixed or variable interest rates
- Terms up to 20 years
Contact a Benchmark Business Banker to learn more about CDC/504 Loans.