WASHINGTON – SBA's lesser known 504 loan program continues to see more activity, the agency reported. So far, in fiscal year 2005, which started on Oct. 1, the SBA did 1,780 loans totaling $883 million. Through the same period this year, the program is up 25% in the number of loans (at 2,250 loans) and up nearly 50% in the dollars ($1.32 billion), the agency said. The 504 or Certified Development Company loan program is a long-term financing tool for economic development within a community. It provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. 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 to provide financing to small businesses. There are about 270 CDCs nationwide. -
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