504 Certified Development Loans

 

To assist small business concerns by providing long-term, fixed-rate financing for fixed assets through the sale of debentures to private investors.

General information about this opportunity
Last Known Status
Active
Program Number
59.041
Federal Agency/Office
Small Business Administration
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
Program Accomplishments
Fiscal Year 2016 No current data available 41000000
Fiscal Year 2017 No data available
Fiscal Year 2018 4,592,728,991
Authorization
Small Business Investment Act of 1958, Title V (15 U.S.C. 695 et seq.), Title V, Section 504, Public Law 85-699
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Certified Development Companies (CDCs) package, close, and service these SBA-guaranteed loans to small businesses. A CDC must be incorporated under general State corporation statute, on a nonprofit basis, for the purpose of promoting economic growth in a particular area.
Beneficiary Eligibility
Small businesses must be independently owned and operated for profit. The small business applicant and its affiliates (affiliation defined at 13 CFR SS121.103) must have: a) A Tangible net worth of $15 million or less; and b) Average net income after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years of $5 million or less.
Credentials/Documentation
To become a Certified Development Company (CDC), the applicant should submit SBA Form 1246, "Application for Certified Development Company" to their local District Office and include the following information: (1) Name, address, and contact information of applicant; (2) list of officers and directors who represent the fields of commercial lending, financial risk management, internal controls, workforce, community, and economic development, legal issues related to commercial lending, and corporate governance in accordance with 13 CFR SS 120.823; (3) SBA Form 1081 on all officers, directors, and staff; (4) resume on each officer and director; (5) the name, resume, and description of duties for each individual who provides the CDC with the professional staff capability; (6) if contracted out, a copy of the contract is required to be submitted to SBA for pre-approval; (7) an organization chart and operating plan; (8) a plan of CDC operations (marketing, evaluating, packaging, processing, closing and servicing functions); (9) financial statements (if a start-up, provide a pro-forma balance sheet with detailed projections and assumptions); (10) the CDC's charter and certified by-laws; (11) articles certified by the State; and (12) a resolution of the Board of Directors certified by a corporate officer in which a company resolves to become a CDC, naming the person who is authorized to execute all documents.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Please review it.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Loan applications must be made on SBA Form 1244 and requirements set forth thereon must be fully complied with by the Certified Development Company and the small business being assisted.
Award Procedure
CDC is notified in writing by the SBA Office. CDC notifies applicant.
Deadlines
Not applicable.
Approval/Disapproval Decision Time
From 1 to 15 days. Within 10 working days after formal acceptance of application.
Appeals
Requests for reconsideration of a declined loan will be granted at any time within 6 months from the date of decline, providing that reasonable evidence is submitted to substantially overcome the stated reasons for decline.
Renewals
Renewals initiated by loan recipients.
How are proposals selected?
Not applicable.
How may assistance be used?
Loans are to assist small businesses in the acquisition of land and buildings; the construction, expansion, renovation or modernization of buildings; or the acquisition and/or installation of machinery and equipment. Loans may have either a 10, 20, or 25-year term. The 504 Debt Refinancing Program may be used to help eligible small business owners ease their financial burdens and further job creation. The 504 Debt Refinancing Program can help eligible borrowers refinance debt from adjustable rate loans with its long term fixed-rates, creating significant savings to borrowers.
What are the requirements after being awarded this opportunity?
Reporting
Not applicable.
Auditing
Small Business Administration has the right to conduct an audit of the books of the Certified Development Company and the small business concern at its discretion.
Records
During the term of the loan, both the Certified Development Company and the small business concern assisted must maintain financial records and information adequately reflecting all transactions and results of operations.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Additional information available on SBA's website at www.sba.gov. Information available at www.sba.gov.
Who do I contact about this opportunity?
Regional or Local Office
Initial contact should be directed to the local District Offices (https://www.sba.gov/tools/local-assistance/districtoffices) listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.
Headquarters Office
Linda Reilly
409 3rd St., SW
8th Floor
Washington, DC 20416 US
linda.reilly@sba.gov
Phone: 202-205-9949
Website Address
http://www.sba.gov/
Financial Information
Account Identification
73-1154-0-1-376
Obligations
(Guaranteed/Insured Loans) FY 18$4,592,728,991.00; FY 19 est $7,500,000,000.00; FY 20 est $7,500,000,000.00; FY 17$271,000,000.00; FY 16$41,000,000.00; -
Range and Average of Financial Assistance
Not applicable/available.
Regulations, Guidelines and Literature
See SBA Rules and Regulation, CFR, Section 120.800 and 120.900; Certified Development Company Program - Program Guide.
Examples of Funded Projects
Not applicable.

 


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