CDC Small Business Finance

To buy, start or expand a business, purchase equipment and inventory, hire employees, cover payroll, increase marketing efforts, optimize cash flow, improve your building, make lease payments, pay off a loan, consolidate debt and more...

Yes, you will work with a real person and have your emails and phone calls returned promptly. They are really good about being your partner through the loan process and beyond. Your loan officer is available to answer questions, explain the process and help ensure you get a loan that you are comfortable with and one that best supports your business goals.

Yes. If you are a start-up there will be a 20% down payment. Management or industry experience is preferred.

You can borrow between $20,000-$500,000.

You can have a credit score as low as 620, collateral is not needed for approval, must be located in California, Arizona or Nevada, able to provide a down payment: 20% for start-ups, 10% for business acquisitions, ability to show sufficient cash flow to make payments, flexibility to waive some requirements for businesses in low-moderate income communities, start-up businesses and veteran owned

Because CDC Small Business Fiannce is a nonprofit lender and not a bank, they have more flexibility and consider credit scores as low as 620.

Most SBA 504-financed loans are for office, retail or industrial buildings. The SBA 504 fixed-rate loan finances 40% of the total purchase. A bank or other lender provides 50% and the business owner contributes a 10% down payment. For example, if the building purchase price is $500,000, the following would be the loan structure: Bank first mortgage – $250,000, CDC Small Business Finance second trust deed – $200,000, Borrower down payment – $50,000.

Straight purchases usually require no more than 60 days to fund. If construction is involved, this can extend the process.

Here are some of the benefits of an SBA 504 Commercial Real Estate Loan: Long-Term fixed interest rate, you always know your occupancy cost, below-market interest rate, only 10% down, 10, 20 and 25-year term options, no balloon payments, projected income is considered, not just historical cash flows and the only collateral needed is the asset you are acquiring.

The time it takes to get a small business loan depends on which loan product is the best match for your needs. We have a loan that funds in 5 business days from approval and others can take 30-60 days depending on your needs and situation. It is best to consult with a Loan Officer to determine which type of loan is right for you and to find out the specific timing of that loan. By submitting required documents as timely as possible you will help quicken the process.

The top reasons to own a commercial building are to build equity, stabilize occupancy costs and preserve cash.

For existing businesses, you will need to provide a business debt schedule, business tax returns from the last 3 years and an interim financial statement current within 45 days, including your balance sheet and profit and loss statement. For a startup, you will initially need to provide your business plan and business projections. Anyone who holds 20% or more ownership in a business also needs to provide personal tax returns for the most current year and a personal financial statement.

If you are a start-up business, you will need a business plan to apply for a loan. If you are an existing business in operation for more than two years, you will need to compile a summary of the history and nature of your business. Or, if you are expanding your business in some way, you will need to explain your expansion plan and how expansion will positively affect revenue.