504 Certified Development Loans
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
To assist small business concerns by providing long-term, fixed-rate financing for fixed assets through the sale of debentures to private investors.
Eligibility
Eligible Applicants
- Small Business Person
Small Business is based the size standard on either number of employees or annual receipts based on the North American Industry Classification system (NAICS)
Beneficiaries
- Small Business Person
Small Business is based the size standard on either number of employees or annual receipts based on the North American Industry Classification system (NAICS)
How to Apply
Award Procedure
CDC is notified in writing by the SBA Office. CDC notifies applicant.
Decision Timeline
- Approval: From 1 to 15 days
Within 10 working days after formal acceptance of application.
Program details & compliance
Description
To assist small business concerns by providing long-term, fixed-rate financing for fixed assets through the sale of debentures to private investors.
Mission Categories
Primary: Small Business
Use of Funds
Allowed Uses
Loans are to assist small businesses in the acquisition of land and buildings; the construction, expansion, renovation or modernization of buildings; or the acquisition and/or installation of machinery and equipment. Loans may have either a 10, 20, or 25-year term. The 504 Debt Refinancing Program may be used to help eligible small business owners ease their financial burdens and further job creation. The 504 Debt Refinancing Program can help eligible borrowers refinance debt from adjustable rate loans with its long term fixed-rates, creating significant savings to borrowers.
Required Documentation
To become a Certified Development Company (CDC), the applicant should submit SBA Form 1246, “Application for Certified Development Company” to their local District Office and include the following information: (1) Name, address, and contact information of applicant; (2) list of officers and directors who represent the fields of commercial lending, financial risk management, internal controls, workforce, community, and economic development, legal issues related to commercial lending, and corporate governance in accordance with 13 CFR § 120.823; (3) SBA Form 1081 on all officers, directors, and staff; (4) resume on each officer and director; (5) the name, resume, and description of duties for each individual who provides the CDC with the professional staff capability; (6) if contracted out, a copy of the contract is required to be submitted to SBA for pre-approval; (7) an organization chart and operating plan; (8) a plan of CDC operations (marketing, evaluating, packaging, processing, closing and servicing functions); (9) financial statements (if a start-up, provide a pro-forma balance sheet with detailed projections and assumptions); (10) the CDC's charter and certified by-laws; (11) articles certified by the State; and (12) a resolution of the Board of Directors certified by a corporate officer in which a company resolves to become a CDC, naming the person who is authorized to execute all documents.