CDC/504 for business-purpose real estate
Through select private non-bank SBA lenders and Certified Development Companies (CDCs), we arrange SBA CDC/504 financing for business owner-occupied commercial real estate. The 504 structure pairs a first-lien loan from a private SBA partner with a fixed-rate CDC debenture, delivering long amortization and predictable payments on the CDC portion—ideal for owning the facility your company operates from.
What CDC/504 finances (our private SBA channel)
Real estate tied directly to your operating business: purchase, construction, renovation, or expansion of an owner-occupied building, plus eligible site work and soft costs. To qualify, your operating company must occupy 51%+ of an existing building or plan for 61%+ occupancy at completion for new construction.
Typical structure and terms
A common arrangement is roughly “50/40/10”: ~50% first-lien from a private SBA lender, ~40% CDC debenture (second lien), and ~10% borrower equity (higher for start-ups or special-use). The CDC portion is typically fixed rate for 20–25 years; the first-lien portion may be fixed or variable with a 10–25 year term and 20–25 year amortization. Many soft costs—appraisal, environmental, and select closing items—can be financed within the project.
Where 504 shines
Facility ownership. Lock in long-term occupancy cost with stable payments sized to the asset’s life.
Renovation or expansion. Fund construction or improvements while maintaining affordable long-term repayment.
Rent Replacement. Transition from leasing to ownership under the 51%/61% rules to build equity and stabilize cost.
Business plans & financial projections (optional)
Well-prepared files move faster. We support CDC/504 underwriting with:
- Concise narrative covering market, operations, and risk/mitigation
- Sources/uses aligned to SBA-eligible costs and 504 structure
- Monthly three-statement projections with DSCR and sensitivities
- Owner-occupancy mapping (51%/61%) and Rent Replacement view
Details on our process: Plans & Projections.
Our role with private SBA lenders & CDC partners
We pre-qualify quickly, confirm occupancy and eligibility, and prepare a lender-ready package. We coordinate private non-bank SBA lender + CDC requirements so environmental, appraisal, and closing steps stay synchronized.
The result is a clear, predictable path from term sheet to CDC authorization, closing, and funding.
Getting started
Share your property details, occupancy plan, and timeline. We’ll confirm eligibility, outline terms, and map the process to a stable long-term solution under the SBA 504 structure.