SBA works with Certified Development Companies (CDCs) and private-sector lenders to provide financing to small businesses through the 504/CDC Loan Program. The program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Businesses must meet size standards set by SBA.
To be eligible for a CDC/504 loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies as small if it does not have a tangible net worth in excess of $7.5 million and does not have an average net income in excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate.