The National Association of Development Companies (NADCO) is the trade association for the nation's Certified Development Companies (CDCs). Our members are non-profit organizations that have been certified by the U.S. Small Business Administration (SBA) to provide financing to small businesses through the Certified Development Company Economic Development Loan Program also known as the SBA 504 loan program.
The SBA 504 loan program was created for two reasons: (1) To provide financing to entrepreneurs who are ready to expand and need funds to purchase real estate or capital assets, and (2) for the purpose of stimulating economic development through job creation, business growth and increased tax revenues.
Registration is Now OPEN!
Registration for all of the following events is taking place on the NADCO website. For event details, hotel information and to register, click on the links below.
Sally Robertson, NADCO Regional III Director (Business Finance Group) provided testimony February 26, 2010 before a joint hearing of the House Small Business Committee and the Committee on Financial Services entitled, "Condition of Small Business and Commercial Real Estate Lending in Local Markets."
NADCO Participates in Small Business Financing Forum
The CDC industry was well represented at the Small Business Financing Forum held at the U.S. Department of Treasury on November 18, 2009. The forum, held at the request of President Obama, brought together the U.S. Department of Treasury, the U.S. Small Business Administration (SBA), small business borrowers and small business lenders to discuss the inability of America’s small businesses to obtain credit and to come up with concrete recommendations for solutions. Treasury Secretary Geithner's opening statement is available here.
NADCO Chair, Jean Wojtowicz, (Indiana Statewide CDC) was a speaker on one of the panels and provided an overview of the benefits of the SBA 504 loan program to small businesses and the excellent return on investment on the cost of running the SBA 504 loan program for the federal government. She also advocated increasing bank participation in SBA lending by suggesting that the SBA work with the American Bankers Association to promote SBA's guaranteed lending programs. Jean's comments are in the video available in Part 1 of the forum.
Chris Crawford, NADCO President, Kurt Chilcott, NADCO Past Chair, (CDC Small Business Finance) and Charlie Cleary from Self-Help Ventures Fund were also present at the forum. All attendees participated in the breakout sessions and contributed to the list of suggestions compiled at the forum. At the conclusion of the forum, the ideas and suggestions were summarized and can be seen in the video available as Part 2.
As a follow up to the Nov. 18, 2009 Small Business Financing Forum, Treasury and SBA issued their Report to the President on December 3, 2009 summarizing the policy ideas and recommendations discussed. The 52-page Report is available here.
Metropolitan Archives, a small business that obtained an SBA 504 loan to purchase their building in 2009, was the site of a presidential press conference on new Small Business Lending Initiatives on October 21, 2009.
President Barack Obama announced his support ofincreasing the lending cap on SBA 504 loans from the current level of $1.5 million to $5 million. NADCO proposed this increase to both Congress and the Small Business Administration as an important way to assist more successful small businesses.
NADCO President, Chris Crawford, an invited guest at the event, remarked, "This increase in the loan cap for our borrowers will allow many more successful small businesses to continue to expand and add jobs in their communities. There is no better way to improve our national economy than to support the expansion of our country’s successful small businesses. We applaud the administration for their continued efforts to increase small business access to capital.”
A simple way to describe an SBA 504 loan is as a mortgage for small business owners to "purchase homes"for their businesses. Visit SBA 504 Loansto find basic information on SBA 504 loans and how one can work for you!
Over 100,000 entrepreneurs have obtained SBA 504 loans over the past 25 years.
Take a moment to click on our SBA 504 Borrower Showcase project below! We highlighted an SBA 504 borrower from each state, the District of Columbia and Puerto Rico to provide a snapshot of some of the success stories that were made possible by SBA 504 loans.
SBA 504 loans allow business owners to buy, build or renovate commercial real estate. Financing options include the purchase and/or renovation of an existing building; the purchase of land and construction of a new building; and also the purchase of expensive equipment or machinery that requires long-term financing.
Similar to a residential mortgage, an SBA 504 loan is for a long term (either 10 or 20 years) and the interest rate is fixed for the term of the loan. Interest rates are competitive and usually lower than prime.
When you are ready to see if an SBA 504 loan is right for you, start by finding the CDC in your area by browsing our member directory link: Find a Member. Then, give your bank a call to see if they would like to partner with the CDC to structure your loan.
Certified Development Company - Capability Study - June 2009
NADCO conducted a study in June 2009 to gather information on the scope of programs and services offered by Certified Development Companies in addition to providing SBA 504 loans to small businesses. Approximately 55% of CDCs participated in the study, and the information gathered on the range of financing programs and services offered is impressive.
NADCO found that CDCs participate in a stunning number of state, local, federal and self-funded financing programs. CDCs provided a staggering $42 billion in direct financing through the programs they administered . When you factor in the other funding partners in these projects, the total dollar amount for projects financed through CDCs, the total is over $118 billion to 128,155 small businesses.
