CDC Small Business Finance

CDC Small Business Finance is a nonprofit organization based in San Diego, California, that is one of the largest Community Development Financial Institutions and SBA 504 lenders in the United States. It focuses on providing affordable business financing to small businesses, particularly those in underserved communities.

SBA 504 loans are a specific type of government-backed business loan designed for purchasing major fixed assets. They are typically used to buy commercial real estate, large equipment or to fund significant construction or renovation projects. SBA 504 loans involve a three-way structure: a bank or conventional lender provides a portion of the financing, the CDC (Certified Development Company, such as CDC Small Business Finance) provides a portion backed by a government debenture, and the borrower contributes equity. This structure often allows businesses to purchase commercial property with a lower down payment than a conventional real estate loan.

CDC Small Business Finance is also a CDFI, meaning it is mission-driven and focused on expanding access to capital for underserved small businesses, including minority-owned and women-owned companies.

In addition to SBA 504 lending, CDC Small Business Finance also offers direct small business loans and microloans for businesses that may not qualify for a full SBA loan.

CDC Small Business Finance primarily serves California and the Southwest but has expanded its reach nationally. If you are looking to purchase commercial real estate or major equipment using an SBA 504 loan, CDC Small Business Finance is one of the most experienced SBA 504 lenders in the country and is worth contacting for guidance.