SBA Loans

Category: Local Incentives

Small Business Administration CDC/504 Loans The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a non-profit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. Caprock Business Finance Corporation, Inc. in Lubbock is the CDC that serves Midland and Ector Counties. The CDC can be reached at (806) 762-8721 or www.caprock504.org STATE PROGRAMS www.governor.state.tx.us