Acquisition and development financing involving a SBA "Certified Development Company" (CDC) provides you with long-term, fixed-rate financing for major fixed assets (land, buildings, etc.).
This program contributes to community economic development. The CDC works with commercial lenders to provide financing to businesses.
This program includes a loan from a commercial lender that covers 50% percent of the project and a second loan for up to 40% of the project cost from the CDC that is 100% SBA guaranteed for a combined 90% LTV.
Funding from this program can be used for:
Purchasing land and improvements, including existing buildings
Grading, street improvements
Utilities, parking lots and landscaping
Construction of new facilities
Modernizing, renovating or converting existing facilities
Purchasing long-term machinery and equipment
The loan program cannot be used for: Working capital or inventory, consolidating or repaying debt, or refinancing.
