504 Certified Development Loans

To assist small business concerns by providing long-term, fixed-rate financing for fixed assets through the sale of debentures to private investors.

Related Programs59.012 7(a) Loan Guarantees

Agency - Small Business Administration

The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

Office - See Regional Agency Offices.

Initial contact should be directed to the local District Offices (https://www.sba.gov/tools/local-assistance/districtoffices) listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.
Website Address


Program Accomplishments

Fiscal Year 2016: 41000000. Fiscal Year 2017: No data available. Fiscal Year 2018: No data available.

Uses and Use Restrictions

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 or 20-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.

Eligibility Requirements

Applicant Eligibility

Certified Development Companies (CDCs) package, close, and service these SBA-guaranteed loans to small businesses.

A CDC must be incorporated under general State corporation statute, on a nonprofit basis, for the purpose of promoting economic growth in a particular area.

Beneficiary Eligibility

Small businesses must be independently owned and operated for profit. The small business applicant and its affiliates (affiliation defined at 13 CFR 121.103) must have: a) A Tangible net worth of $15 million or less; and b) Average net income after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years of $5 million or less.


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. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is required.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.


Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Loan applications must be made on SBA Form 1244 and requirements set forth thereon must be fully complied with by the Certified Development Company and the small business being assisted.

Award Procedures

CDC is notified in writing by the SBA Office. CDC notifies applicant.


Not Applicable.


Executive Order Small Business Investment Act of 1958, Title V (15 U.S.C. 695 et seq.) , Title V, Section 504, Public Law 85-699.

Range of Approval/Disapproval Time

From 1 to 15 days. Within 10 working days after formal acceptance of application.


Requests for reconsideration of a declined loan will be granted at any time within 6 months from the date of decline, providing that reasonable evidence is submitted to substantially overcome the stated reasons for decline.


Renewals initiated by loan recipients.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Matching requirements are not applicable to this program. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Additional information available on SBA's website at www.sba.gov. See the following for information on how assistance is awarded/released: Information available at www.sba.gov.

Post Assistance Requirements


No reports are required.


In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Small Business Administration has the right to conduct an audit of the books of the Certified Development Company and the small business concern at its discretion.


During the term of the loan, both the Certified Development Company and the small business concern assisted must maintain financial records and information adequately reflecting all transactions and results of operations.

Financial Information

Account Identification



(Guaranteed/Insured Loans) FY 16 $41,000,000; FY 17 est $7,500,000,000; and FY 18 est $7,500,000,000

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

See SBA Rules and Regulation, CFR, Section 120.800 and 120.900; Certified Development Company Program - Program Guide.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Initial contact should be directed to the local District Offices (https://www.sba.gov/tools/local-assistance/districtoffices) listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.

Headquarters Office

Linda Reilly 409 3rd St., SW 8th Floor, Washington, District of Columbia 20416 Email: linda.reilly@sba.gov Phone: 202-205-9949

Criteria for Selecting Proposals

Not Applicable.

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