CDC stands for Certified Development Company. There are approximately 230 CDCs across the country, varying in size. CDCs are typically involved in the loan process after a commitment letter is sent, but can also be expedited to speed up the process.

Each Certified Development Company (CDC) is a private, nonprofit organization that is certified by the Small Business Administration (SBA) to promote economic development in local communities by providing funding to small businesses. CDCs typically provide financing under the SBA's 504 loan program, which is designed to help small businesses purchase fixed assets such as land, buildings, and equipment.

The SBA works with CDCs to provide loans with low-interest rates, long repayment terms, and lower down payment requirements than traditional bank loans.

CDCs are required to provide at least 10% of the total loan amount, while the SBA guarantees up to 40% of the loan, with the remaining 50% provided by a participating lender. CDCs work closely with participating lenders to underwrite, approve, and service SBA 504 loans. They also offer technical assistance and counseling to small businesses to help them succeed. CDCs are typically funded by fees charged on SBA 504 loans, as well as by grants from state and local governments, foundations, and other sources.

Overall, CDCs play an important role in promoting economic development and job creation in local communities by providing access to affordable financing for small businesses. Beau offers to discuss SBA financing options for various business needs such as startups, existing businesses, franchises, and expansions. It is recommended to find a bank with experience in 504 loans and referrals to reputable CDCs for optimal loan processing.

If you'd like to meet with Beau to talk financing, book a call here
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