The SBA CDC/504 loan program is designed to help small businesses finance long-term, fixed-asset investments such as commercial real estate and equipment. This program is ideal for businesses looking to expand through property ownership, renovate facilities, or acquire major equipment with fixed-rate financing and lower down payments compared to conventional loans.
Market Direct Capital™ works closely with Certified Development Companies (CDCs) and participating lenders to structure 504 loans that align with your project goals and financial profile. With experience since 2009, we guide borrowers through the unique two-part structure of the 504 loan to ensure a smooth and successful process from application to closing.
The 504 loan is used to finance major fixed assets that promote business growth or modernization. Eligible uses include:
The CDC/504 loan involves two lenders working together. A private lender funds 50 percent of the project, a CDC funds 40 percent backed by the SBA, and the borrower contributes 10 percent. This structure reduces lender risk and borrower equity requirements.
Most for-profit businesses operating in the United States may be eligible for a 504 loan if they meet SBA size standards and are using the funds for approved purposes. The business must occupy at least 51 percent of the property being financed and demonstrate the ability to repay.
Market Direct Capital™ helps borrowers determine eligibility and coordinate with both the CDC and private lender to package and submit a complete loan application. We understand the timing and documentation requirements involved in real estate and construction financing and will work to keep your project on track.
The CDC/504 loan program is a powerful tool for businesses ready to invest in real estate or long-term assets. If you’re considering a property acquisition or facility upgrade, Market Direct Capital™ can help you access the capital and structure that fits your objectives.
Contact us to learn more or schedule a free consultation today.
Take the first step toward securing SBA or USDA financing with a free consultation from Market Direct Capital™. Whether you're exploring loan options or ready to move forward, we'll review your goals and provide expert guidance on the best path to funding. No pressure, no obligation—just clear, helpful insight from experienced professionals.
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