What is a Certified Development Company?
Short answer
A Certified Development Company is a nonprofit that SBA certifies and regulates to deliver 504 loans in an approved area. A 504 loan is available only through a CDC, and the CDC's debenture funds part of your project.
A Certified Development Company, or CDC, is the entity SBA authorizes to deliver 504 financing (SOP 50 10 8.1, App. 3, p. 297). It must be a non-profit corporation, except for-profit CDCs certified before 1987 (13 CFR § 120.816). 504 loans are available only through CDCs (sba.gov/loans/504-loans, read November 8, 2026). SBA keeps a list of them.
What a CDC does
- Prepares the credit memorandum and submits the application to SBA.
- Issues the debenture that funds the 504 loan (13 CFR § 120.802).
- Closes the 504 loan and answers for compliance at closing (Sec. C, Ch. 2, Para. C.2).
- Services the loan, including annual financial reviews (13 CFR § 120.970).
A CDC cannot be the third party lender on a project it finances (App. 3).
Where a CDC can work
Each CDC has an Area of Operations. The minimum is the state where it is incorporated (13 CFR § 120.802). SBA can approve a case-by-case exception in three situations (13 CFR § 120.839). The CDC already helped your business, the CDCs serving the area agree, or no CDC serves the area.
Agents
You do not need a broker or other agent to apply (Sec. A, Ch. 4, p. 59).
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
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