Certified Development Company · SBA 504
San Fernando Valley Small Business Development Corporation
Los Angeles, CA · 93 504 loans since 2010, 25 in the last five years · active in 1 states.
What they finance
last 5 yearsProject sizes
bank first + CDC secondA 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 |
|---|---|
| Harvest Commercial Capital, LLC | 4 |
| CTBC Bank Corp. (USA) | 3 |
| Cathay Bank | 3 |
| BANK OF AMERICA N.A. | 2 |
| First-Citizens Bank & Trust Company | 2 |
| APC-ASBF, L.P. | 2 |
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| Approved | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| 2013 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
504 loans default far less often than 7(a) — across the whole programme, 0.84% of dollars against 2.11% for 7(a). Real estate collateral is the reason. Numbers this small move sharply on a handful of loans, so read a single cell with care.
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).
Other CDCs to consider
Most CDCs lend across several states, so the nearest one is rarely your only option — and rates and service vary.