Loan Types
(Click a loan for more information)

• 504 Loan Program
• The 7A Loan
• Community Loan Programs
• SBA Micro Loan
• San Diego Bankers’ Small Business CDC

• SoCal CDFI
• Community Express SBA Loan Program
• State of California Guaranty Loan
• Direct Capital
• Direct Capital - 504 Bridge Loans

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The SBA 504 Loan---A Fixed Rate Commercial Real Estate Loan With Only 10% Down

View or Download our SBA 504 Brochure in .pdf Format

The 504 Loan Program allows small business owners to purchase an industrial or commercial building at below-market interest rates with a minimum of ten percent down payment or equity injection. The loan proceeds may be used to purchase or remodel an existing building, construct a new facility or to purchase equipment with a minimum economic useful life of 10 years.

How Much Can I Borrow?

Generally, up to 90% of the total project cost or appraised value of the property, whichever is the lesser amount. There is no minimum on the total project size. However, CDC debenture cannot exceed a maximum of $2.0 million for most businesses and $4.0 million for manufacturers.

Typical Structure:

The 504 program requires the participation of a private lender for a portion of the borrowed funds. The lender makes a loan to the borrower in the first deed lien position for 50% of the total project. CDC issues a loan in the second trust deed lien position for $40% of the total project. Borrower contributes 10% of total project. Securing a private lender can be arranged by CDC or borrower can invite their bank to participate in the project.

50-40-10 Loan Structure

What are the Terms, Rates and Fees?

The bank portion is typically amortized over 25 years with a minimum term of 10 years or up to a maximum of 25 years. Rate term and fees are negotiable between borrower and lender.

The CDC portion can be offered with two term options of 10 or 20 years fully amortized. The interest rate on a 504 loan is set at an increment above the current market rate for five-year and ten-year U.S. Treasury issues. Fees are approximately 2.75% of the loan amount, plus a fixed fee of $1,200 for a legal review. All fees are financed in the 504 loan.

Are There Any Requirements to Qualify for this Program?

Most small businesses meet the basic size 504 eligibility requirements of: Business Net Worth not to exceed $7.5 million, average Net Profit after taxes for 2 consecutive years not to exceed $2.5 million or qualify under 7(a) size standards which are based on either number of employees or maximum level of annual revenue and this criteria is dependant upon industry sector (see 7a loan program description for more details).

Other requirements include: 51% owner occupancy for existing building purchase, 60% owner occupancy for new construction and if equipment, it must have a minimum 10 year economic life.

Is it Difficult to Apply?

Not at all. When applying for an SBA loan - as with any loan - you are asked to fill out a standardized application and provide specific documentation. At CDC, we provide a checklist to simplify the process, will work with your accountant, banker, lawyer or other key confidant and do all of the analysis, packaging, and SBA interfacing for you. Our role is to keep the process easy for our borrowers.

Download our 504 loan application here.

What's the Turnaround Time?

24-Hour Prequalification

Our experienced loan officers can provide you with loan pre-qualification in just 1 business days. The complete procedure from application submission to disbursement of funds takes approximately 45 to 60 days, depending on the complexity of the loan.

First Step to getting your loan

We will work with your current bank or help you identify a lender to participate in the 1^st trust deed portion of your financing. To speak with a loan officer in more detail, submit some brief information on our contact us page inquiry and we will contact you or call our toll free number at (800) 611-5170.

Download our step-by-step guide to the loan process.

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What is an SBA 7(A) Loan? The best resource for General Business/ Operations Capital.

7(A) Program

7(a) loans are the most basic and most type loan SBA’s business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.
7(a) loans are only available on a guaranty basis. This means they are provided by lenders who choose to structure their own loans by SBA’s requirements and who apply and receive a guaranty from SBA on a portion of this loan. The SBA does not fully guaranty 7(a) loans. The lender and SBA share the risk that a borrower will not be able to repay the loan in full. The guaranty is a guaranty against payment default. It does not cover imprudent decisions by the lender of misrepresentation by the borrower.

How Much Can I Borrow?

The 7(a) Loan Program has a maximum loan amount of $2.0 million dollars. SBA’s maximum exposure is $1.5 million. Thus, if a business receives an SBA guaranteed loan for $2 million, the maximum guaranty to the lender will be $1.5 million or 75%.

What Terms and Rates are Available?

SBA loan program are generally intended to encourage longer term small business financing but actual loan maturities are based on: the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed. However, maximum loan maturities have been established: twenty-five (25) years for real estate and equipment; and generally seven (7) years for working capital. When loan proceeds will be used for a combination of purposes, the maximum maturity can be weighted average of those maturities, which results in level payments.

What Can an SBA Loan be Used For?

It can be used for any recognized business purpose: to buy an existing business, as start-up capital for a new business, working capital, to refinance existing debt, the purchase of new or used equipment, the purchase of real estate for business purposes, or to finance accounts receivable.

What is the Definition of a Small Business?

There is size limitations (maximums) to qualify for an SBA loan, based on your business's SIC code. The following are guidelines; please feel free to contact us to discuss your particular business.

Manufacturing - maximum 500 to 1,500 employees.

Wholesaling - maximum of 100 employees.

Services - maximum of $3.5 to $21.5 million three years average gross sales.

Retailing - maximum or $5 to $20 million three years average gross sales.

Is It Difficult to Apply?

No. When applying for an SBA loan - as with any loan - you are asked to fill out a standardized application and provide specific documentation. At CDC Small Business Finance, we provide a checklist to simplify the process, will work with your accountant, and do all of the analysis, packaging, and SBA interfacing for you.
The complete procedure from application submission to disbursement of funds takes approximately 30 to 90 days depending on the complexity of the loan.

Download our 7(A) loan application here.

First Step to getting your loan

We will work with your current bank or help you identify a lender to participate in your financing. To speak with a loan officer in more detail, submit some brief information on our Contact Us page inquiry or call (800) 611-5170 and ask to speak to one of our loan officers.

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Community Loan Programs

As the nation’s leading non-profit SBA lender, CDC has leveraged the expertise of our staff and our relationships with over 70 lending partners to create several loan program designed to make credit available to entrepreneurs who cannot qualify under conventional banking criteria. Our Community Loan Program offer financing options to emerging businesses, preparing them for growth and expansion, and ultimatley strengthen out local economy by creating new jobs. We achieve this by working with lenders to create specialized lending pools; arranging loan guarantess; providing applicants with intensive loan packaging and technical assistance; and/or contributing our own funds to create several loan programs designed to give qualified entrepreneurs the boost they need to “grow” their business into a “bankable” one within a short time. Since 1978, CDC has issued thousands of small business loans in Southern California resulting in the creation of over 50,000 jobs. Historically, CDC has been leading SBA lender in terms of its overall lending volume and, more specifically its success at making loans to women and minority owned businesses. Three of every four loans made via one of our Community Loan Programs have been to women, minority and veteran owned businesses and/or small businesses located in low to moderate income areas. Thirty percent of all loans made last year were to businesses located in an LMI area and we anticipate that this trend will continue.

View a summary of our community loan programs in a PDF matrix

SBA Micro Loan Program – Launched in 2001, this program provides loans up to $35,000 and includes pre and post loan technical assistance. Since inception, CDC has provided financing to 22 business for $590,500 with an average loan size of $26,800 and has delivered pre-and post-funding TA to over 100 companies. Call to free (800) 611-5170 and ask for the Community Loan Programs Coordinator - Susan Lamping.

San Diego Bankers’ Small Business CDC – Through our Banker’s CDC program, a multi bank micro-loan consortium, we have historically offered financing up to $50,000 to local businesses throughout San Diego. To date we have provided loans to 114 entrepreneurs, amounting to a total of $3.8 million in funding. This program is currently being re-structured and is prepared to move forward with implementing an innovative financing program that not only focuses on medical and child care facility in low-,moderate income communities, but on businesses that yield positive benefits in their respective LMI communities. Cal to free (800) 611-5170 and ask for the Community Loan Programs Coordinator - Susan Lamping.

SoCal CDFI – This multi-bank consortium provides pre and post loan technical assistance and offers loans up to $150,000 in Orange County and the Inland Empire. Loans are made to business that might not qualify for a conventional or SBA loan products. Nearly 60 businesses have been funded under this program over the last three years for a total of $1.6 million dollars in financing. Call toll free (800) 464-2149 and ask for the Executive Director - Stacey Sanchez.

Community Express SBA Loan Program - As a Technical Assistance Intermediary in the Community Express Loan Program, CDC partners with financial institutions to help package, underwrite and monitor these SBA loans. Over half the loans we have administered under this program have been to start-up businesses that would not have been eligible for conventional financing. Since our first partnership began in March of 2002, we have worked to get 32 Community Express loans funded, for at total of $3.5 million in financing, creating more than 100 new jobs. All Community Express Loans have been provided to business owned by one of our target groups – women, minority, veteran, or businesses located in a low to moderate income area. Call toll free (800) 611-5170 and ask for the Community Loan Programs Coordinator - Susan Lamping.

California State Guaranty Loan Program

The program provides a (bank non-bank) lender with additional security for a credit request in the form of a Guarantee, which serves as an incentive for the lender to approve a commercial credit request it might not normally consider. The Guarantee is issued on behalf of the State of California by eleven non-profit FDCs located strategically throughout California. Any FDC may issue a Loan Guarantee regardless of the geographical location of the business as long as the business operation is primarily domiciled in California. The FDC program is unrelated to any SBA guarantee program.

Direct Capital

This program is designed to assist borrowers who are unable to meet the qualifying criteria for a 504 Loan but desire to receive the same loan structure benefits. Direct Capital allows small business owners to purchase an industrial or commercial building at below-market interest rates with a minimum of ten to fifteen percent down or equity injection of similar percentage value. The loan proceeds may be used to purchase or remodel an existing building, construct a new facility, refinance existing mortgage debt or to purchase equipment with a minimum economic useful life of 10 years. The Direct Capital loan is a permanent take out loan that can fund directly to Escrow or will used to replace and construction loan used to develop a commercial building.