Certified Development Company (CDC) Loans (504 Loan Program)

  • Robert E. Paoni, LRS,
  • S. Small Business Administration (SBA)
  • 3330 Ginger Creek Drive, Suite B-East
  • Springfield, IL 62711
  • Phone: (217) 793-5020
  • Fax: (217) 793-5025
  • TDD:
  • Email:
  • Website: sba.gov

Purpose of the Program

The purpose of the 504 Loan Program is to assist small businesses by providing long-term financing for fixed assets.

Who is Eligible

The U.S. Small Business Administration (SBA) formally certifies the Certified Development Companies to deliver SBA’s 504 Loan Program. There currently are seven CDCs in Illinois. To be eligible to receive a 504 loan, the small business: must be independently owned and operated for profit; must not be dominant in its field; must have a sound business purpose and demonstrate the ability to repay the 504 loan through business activities. For 504 Loan Program participation, small businesses are defined by the U.S. Small Business Administration as those with net worth less than $7.5 million and annual after tax profits of less than $2.5 million. In a labor surplus area, these limits can be increased by 25 percent.

Application Process

The CDC packages the 504 loans for submission to the SBA. A participating lender is also involved in the financing package.

Availability of Funds

The funds provided for the 504 Loan Program are generated by the sale of bonds or debentures issued by Certified Development Companies and guaranteed by the U.S. Small Business Administration.  Maximum debenture amount is $1,500,000-$2,000,000 when a public policy goal is met and $4,000,000 for a manufacturer.

How Funds are to be used

Fixed assets such as land, buildings, and heavy equipment.

Types of Assistance