The United States Small Business Administration – SBA Certified Development Company (504) Loan Program

The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. It uses Certified Development Companies, which are nonprofit corporations set up to contribute to the economic development of their communities. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide, each covering a specific geographic area. Typically, a 504 project consists of a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.* The CDC loan is typically made for a longer term and a lower fixed rate than would be available through a private lender. Click here to visit the Small Business Administration’s website and learn more about this program:

www.sba.gov/financing/sbaloan/cdc504.html

Since providing superior service to our business clients means more than just making loans, Capital Bank networks regularly with a wide range of non-profit organizations that provide entrepreneurial counseling, technical assistance, business planning classes and more. By keeping connected in these support organizations, Capital Bank is able to help its business clients access a full range of business support services at little to no cost.

Kelley Ferrante
Government Lending Specialist
919.645.6316

* Source: U. S. Small Business Administration website