Glossary
What is CDC (Certified Development Company)?
A Certified Development Company is a nonprofit organization certified by the SBA to provide financing through the SBA 504 loan program. In a typical 504 project, a bank provides the first-position loan, the CDC provides a second-position loan funded by an SBA-guaranteed debenture, and the business contributes a down payment. CDCs generally serve specific geographic areas and promote economic development in their communities. They help package the 504 portion and work alongside the borrower's bank.
Example
A dental practice buying its office building works with a local CDC and a bank to structure a 504 loan.
Related funding
SBA Loans: Government-backed loans with long terms for growth, real estate and acquisitions.
Related terms
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