Premium Only Content

SBA 504 Loans Explained: How CDCs and Lenders Work Together to Fund Your Business
SBA 504 Loans Explained: How CDCs and Lenders Work Together to Fund Your Business
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.
Are you a real estate investor or business owner looking to expand? Book a discovery call with Beau to learn all the ways he can help you - https://investorfinancingpodcast.com/rumble
What is a CDC and at what point do we get a CDC involved in the transaction?
Timestamps:
(00:09) CDC stands for Certified Development Company and there are approximately 230 of them nationwide.
(00:25) CDCs are involved in the loan process typically when a commitment letter is sent out, but they can also be involved earlier to expedite the loan process.
(00:59) Not all CDCs are the same, so it's important to find a bank with experience in 504 loans and good referral sources in the CDC space.
(01:12) Some SBA lenders specialize in 7(a) loans while others specialize in 504 loans.
(01:23) Finding a bank with decades of experience in 504 loans can be beneficial.
If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask
💥 Thanks for watching 💥
#CertifiedDevelopmentCompany #CDC
About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.
🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.
About the Channel: Want to structure your investments in the right and secure way?
Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.
-
0:42
Investor Financing Podcast
8 months agoWhat is the Business Ownership Summit?
191 -
2:27:39
vivafrei
18 hours agoEp. 276: Epstein Subpoenas &Trump E.O! Bondi Offers Reward for Maduro Arrest? MADNESS IN CANADA!
138K130 -
2:23:55
Barry Cunningham
12 hours agoPRESIDENT TRUMP IS NOT PLAYING AROUND...AND THE LIBNUTS CAN'T STOP HIM!
96.5K63 -
22:02
Stephen Gardner
18 hours ago🔥JUST IN: Trump BETRAYAL plot EXPOSED!
115K302 -
38:32
The Why Files
21 days agoThe Real CIA Vol. 1: 693 Pages of Secret Crimes
130K60 -
49:12
MattMorseTV
15 hours ago $22.15 earned🔴Zelenskyy is NOT HAPPY about Trump’s NEW DEAL.🔴
126K157 -
1:03:49
Warren Smith - Secret Scholar Society
4 days ago"You are on the brink" - My Conversation with Nick Fuentes
91.5K64 -
8:05
Tactical Advisor
16 hours agoNEW Best Budget AR15 | PSA Guardsman (FIRST LOOK)
82.7K29 -
8:55
Warren Smith - Secret Scholar Society
3 days agoMatt Walsh EXPOSES a Leftist's Lie So Badly She Flees the Stage
69.9K32 -
25:05
Digital Social Hour
15 hours ago $6.08 earnedScott Jennings: The Fight for Free Speech: Scott Jennings Speaks Out
54.1K14