How to Get an SBA 504 Loan

The SBA 504 Program or CDC/504 furnishes long-term financing for economic development within a community. The program can get businesses long-term financing at a fixed rate for major assets, such as buildings and land. The Certified Development Company (CDC)is a non-profit corporation set up to contribute to the economic development of its community.

The SBA notes that the maximum SBA debenture is $1,500,000 when meeting the job creation criteria or a community development goal. Generally, a business must create or retain one job for every $50,000 provided by the SBA except for "Small Manufacturers" which have a $100,000 job creation or retention goal (see below).The maximum SBA debenture is $2.0 million when meeting a public policy goal.

According to the SBA, the public policy goals of the program are as follows:

  • Business district revitalization.
  • Expansion of exports.
  • Expansion of minority business development.
  • Rural development.
  • Increasing productivity and competitiveness.
  • Restructuring because of federally mandated standards or policies.
  • Changes necessitated by federal budget cutbacks.
  • Expansion of small business concerns owned and controlled by veterans (especially service-disabled veterans)
  • Expansion of small business concerns owned and controlled by women.

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