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Certified Development Company · SBA 504

Big Sky Economic Development Corporation

Billings, MT · 249 504 loans since 2010, 38 in the last five years · active in 2 states.

Loans, last 5 yrs
38
Typical project
$1.6M
total cost, estimated
Typical CDC loan
$684k
the SBA second
Typical term
25 yr
Default rate
2.8%
all 504 5.0%

What stands out about Big Sky Economic Development Corporation

vs every other CDC

A single-state CDC — 99% of its 504 loans are in Montana. It over-weights hotels (except casino hotels) and motels — 10% of its loans, about 2.1× the CDC norm. Its loans have held up well — a 2.8% default rate, comfortably under the 5.0% all-504 average.

What they finance

last 5 years
Assisted Living Facilities for the Elderly
8%
Car Washes
8%
Veterinary Services
8%
Other Activities Related to Real Estate
3%
Offices of Real Estate Agents and Brokers
3%
Everything else
71%

Project sizes

bank first + CDC second
Under $500k
21%
$500k – $1M
21%
$1M – $2.5M
40%
$2.5M – $5M
13%
Over $5M
5%

A 504 project is roughly half bank first mortgage, 45% CDC second and the rest your own money. This is the financed portion, not the whole project.

Banks they work with

first mortgage partners
Bank Deals together
Glacier Bank16
Stockman Bank of Montana12
First Federal Bank & Trust1
Valley Bank of Kalispell1
First Interstate Bank1
Washington Trust Bank1

A 504 needs two lenders. The CDC arranges the SBA portion, a bank writes the first mortgage. If a CDC has done dozens of deals with a particular bank, that pairing works — which is worth knowing before you go hunting for a first mortgage on your own.

Their loans, year by year

cumulative % of CDC dollars charged off
ApprovedYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
20100.00.00.00.00.00.00.00.00.00.0
20110.00.00.00.00.00.00.00.00.00.0
20120.00.00.00.00.00.00.00.00.00.0
20130.00.00.00.00.00.00.00.00.00.0
20140.00.00.00.00.00.00.00.00.00.0
20160.00.00.00.00.00.00.00.00.0·
20190.00.00.00.00.00.0····
0%
12%+▨ too recent to know

504 loans default a little less often than 7(a) overall — 5.0% of loans against 5.7%. But that edge is mostly a mix effect: 7(a) writes far more of the small loans that fail most, and counted at the same loan size 504 is not clearly safer. Numbers this small move sharply on a handful of loans, so read a single cell with care.

Source SBA 504 FOIAReleased 2026-06-30 Loans judged 181 States MT (37), CO (1)

Is 504 right for you?

504 is for owner-occupied real estate and heavy equipment, and it fixes most of your rate for 25 years. The trade is two lenders, two closings and more paperwork than a 7(a).

Compare the two on your numbers → How the program works →

Other CDCs to consider

Florida Business Development CorporatiBusiness Finance CapitalFlorida First Capital Finance CorporatMountain West Small Business Finance

Most CDCs lend across several states, so the nearest one is rarely your only option — and rates and service vary.