|About T/SJ CDC|
A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders (the Bank) to provide financing to small businesses who otherwise may not qualify for a loan. In addition the 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.
The Tracy/San Joaquin CDC is committed to partnering with you in the 504 loan program as a financing tool for economic development within our community. We have been a part of the San Joaquin County community for 25 years. We are the “experts” in this program and we are here to help with your questions big or small.
It is a good business practice to present your small business customers with ALL options when they are planning on purchasing Commercial Real Estate. Even if they qualify for a conventional loan, the concern in preserving their liquidity combine with the security of the 504 programs low, fixed interest rates and long term financing it often times makes the SBA 504 program a better choice. Your customer will appreciate the fact that you took the time to tailor the loan to fit their personal need.
Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.
As stated previously, we here at the Tracy/San Joaquin CDC are the “experts”. We are here to help you with any questions, comments or concerns. So please, never hesitate to contact us.