Review of the SBA 504/CDC Loan Program
January 1, 2017
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The Frame
The 504/ program provides a specific financing structure for small businesses to secure capital for projects, requiring a 50% private lender contribution, 40% from a community development company, and 10% from the business owner.
Potentially affected actors named in the source documents. Mention is not a position.
Small business owners
They are the primary borrowers who must meet specific job creation or economic development criteria to access capital.
Community Development Companies (CDCs)
They act as partners in the loan structure, providing 40% of the project funding.
Private lenders
They are responsible for providing 50% of the total project cost under the program's structure.
Last recorded activity January 1, 2017.
Next step not available in the current record.
Summary
Key Facts
- The 504/CDC loan program requires a 50% contribution from a private lender, 40% from a Community Development Company (CDC), and 10% from the small business borrower.
- To be eligible, small businesses must meet specific job creation or job retention requirements.
- If job requirements are not met, businesses may still qualify by meeting community development or public policy goals, such as local economic stabilization.
- The hearing was held on June 29, 2017, by the Subcommittee on Economic Growth, Tax, and Capital Access.
- The purpose of the hearing was to evaluate the effectiveness of the 504/CDC program and identify potential improvements.
Frequently Asked Questions
What is the 504/CDC loan program?
How is a 504/CDC loan structured?
Do I have to create jobs to get this loan?
Why It Matters
The 504/ program provides a specific financing structure for small businesses to secure capital for projects, requiring a 50% private lender contribution, 40% from a community development company, and 10% from the business owner.
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Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Alternative Eligibility Criteria
The program allows for non-job-related eligibility if the business meets broader community development or public policy goals.
Connected Entities
Sources
www.govinfo.gov
Analysis Score
0–100- Significance40How much this matters to a regular citizen
- Controversy10Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz10Current news / social attention level
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