# 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.

Canonical page: https://www.sbaexpress.loans/answers/what-is-a-certified-development-company/
Last checked: 2026-11-08

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).

## Sources

- [SOP 50 10 8.1, App. 3 (p. 297)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 2, Para. C.2 (Para. C begins p. 270)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 4 (p. 59)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.802](https://www.ecfr.gov/current/title-13/section-120.802)
- [13 CFR § 120.816](https://www.ecfr.gov/current/title-13/section-120.816)
- [13 CFR § 120.839](https://www.ecfr.gov/current/title-13/section-120.839)
- [13 CFR § 120.970](https://www.ecfr.gov/current/title-13/section-120.970)
- [sba.gov/loans/504-loans (read November 8, 2026)](https://www.sba.gov/loans/504-loans/)