A Certified Development Company (CDC) is a nonprofit entity that works with the SBA and third-party lenders to promote economic growth within its area of operation. CDCs are SBA-regulated and certified to help lending partners with financing small businesses nationwide. There are 270 CDCs that service specific geographical areas within the United States. To find a CDC in your area, first locate the nearest SBA District Office.

According to the SBA, “A Certified Development Company (CDC) is a nonprofit organization that promotes economic development within its community through 504 loans. CDCs are certified and regulated by the SBA, and work with SBA and participating lenders (typically banks) to provide financing to small businesses, which in turn accomplishes the goal of community economic development.”

Of course, that really doesn’t shed a lot of light on the situation. For another definition, we can turn to the Office of the Comptroller of the Currency, within the Treasury Department. The OCC shares a similar description of what a CDC is, but then continues by explaining that there are currently 252 CDCs in operation nationwide, and each of them is able to offer 504 loans within the entire state in which it is chartered. It is within the bounds of possibility that the SBA could authorize a CDC to offer 504 loans within the continental United States. While each of these organizations is certified by the SBA, they are not part of the organization. While most CDCs work strictly with 504 loans, some of them also work with applicants seeking 7(a) loans, as well.

The benefits of using a Certified Development Company (CDC) for small business financing include access to local resources, public policy goals, and experienced loan processing. CDCs are designed to help strengthen local businesses and support local economies, revitalize neighborhoods, and breathe new life into these areas. They also ensure that women and minority business owners are supported, while also providing help for veterans, and even offering advice and guidance for business owners. CDCs also have relationships with lenders, which can help streamline the loan process. Finally, CDCs that have been around for some time will have considerably more experience handling 504 loans, and will be better able to adapt to your unique needs and requirements.

Businesses that are eligible for SBA Express financing through a CDC include:

• Manufacturing
• Wholesale
• Retail
• Service
• Agricultural
• Hospitality
• Restaurants
• Non-profit organizations

Businesses that are ineligible for SBA Express financing include:

• Financial businesses that engage in lending
• Life insurance companies
• Consumer and marketing cooperatives
• Speculative businesses
• Businesses that have a focus on political interests and/or lobbying
• Businesses involved in pyramid sale distribution plans
• Businesses that primarily deal in the teaching of religion
• Businesses that can attribute over a third of their gross annual revenue to legal gambling activities
• Businesses that promote or partake in _any_ illegal activities
• Businesses under the ownership of developers or landlords with no active role regarding assets acquired or improved by the loan proceeds
• Any business or club that limits its number of patrons or members for reasons not related to capacity
• Government-owned businesses
• Loan packagers that deal with SBA loan products
• Businesses that present or profit from (whether directly or indirectly) acts of a sexual nature
• Any business where the CDC or lender (including any and all associates) owns an equity interest

A business may also be ineligible if financing is readily available through other reasonable means like identical loan terms being offered through a financial institution without an SBA guarantee, or the use of personal assets that would not burden the business owner financially.

You can find a Certified Development Company (CDC) in your area by first locating the nearest SBA District Office. There are currently 252 CDCs in operation nationwide, and each of them is able to offer 504 loans within the entire state in which it is chartered.

To find a CDC in your area, visit the SBA District Office page.

To apply for an SBA Express Loan through a CDC, you will need to provide the following documents:

• Business tax returns for the previous three years
• Personal tax returns for the previous three years
• Personal history statement
• Personal financial statement
• Personal budget analysis
• Business financial statements for the previous three years
• Business debt schedule
• Interim financial statement (signed and dated, and including balance sheet and income statement dated within the previous two months)
• Accounts receivable aging (dated within the previous two months)
• Accounts payable aging (dated within the previous two months)
• Complete business plan
• One year of financial projections with assumptions
• Purchase agreement
• Written estimate from a contractor if the loan is for construction
• If this is a franchise, you will need a letter of intent from the franchisor and a FUOC and franchise agreement
• If you are buying another business, also include:
  • The business owner’s tax returns for the previous three years
  • Interim finance statement dated within the last 60 days
  • Signed purchase agreement with cost breakdown, amendments, etc.
• If you are using gift funds, you will need to provide a gift letter
• Previous government financing schedule
• Environmental impact questionnaire
• Application certification an authorization
• Documents pertaining to the ownership of other businesses and their finances (if applicable)
• Copy of loan agreement and SBA authorization if you have another SBA loan
• If you are refinancing a loan, you will need:
  • Copy of the original debt documentation
  • Your original purchase agreement, including settlement sheet,