PUTTING A CDC TO WORK FOR YOU
Bay Area Development Company is a Certified Development Company (CDC), but we are often asked what that means. Let’s start with the technical definition from the SBA: “Certified Development Companies (CDCs) are non-profit corporations certified and regulated by the Small Business Administration to package, process, close, and service 504 loans.” Put simply, CDCs partner with the SBA, banks, and credit unions so small businesses can grow by accessing capital to buy, build, or refinance business property. In fact, the mission of CDCs is to promote local economic development and create new jobs by supporting small businesses, especially those in low income areas and those owned by women, veterans, and/or minorities. Here are three ways we are uniquely positioned to do just that:
A guide through the process.
“They made the process very simple and were able to help us get what we needed to secure our building. It was nice being able to work with seasoned professionals across the board. They respected our time and didn’t make us hunt down things that weren’t needed.”
The SBA 504 program offers so many benefits for small businesses, but the application process does take a bit of effort to complete. As the quote above from one of our clients reflects, having a trusted, experienced navigator will make all the difference. A CDC not only will walk you through every step, but will also advocate for your business, anticipate potential issues that may arise, and make the financing process as smooth as possible from start to finish.
A team on your side.
“Getting someone else to believe in your idea is really hard.”
This quote came from a client of ours who has opened numerous restaurants over the years. He had a new concept ready to bring to market but, even with his proven track record, he found that traditional funding was difficult to secure. This is a hurdle many small businesses face and is one of the areas where CDCs shine. Early-stage businesses may be viewed as significant credit risks by traditional lenders. But as non-profits, CDCs have the flexibility to look at a company’s entire story – and its potential – when making lending decisions. CDCs like Bay Area Development work together with banks and credit unions to deliver 504 funding, so when we leverage established relationships with our lending partners, that gives our business clients a big advantage.
A trusted market expert.
“I gave them my numbers and they came back with an answer. That made it easier; knowing what kind of building I qualified for. It gave me clarity about the path I could travel.”
There are approximately 180 CDCs across the country, and all of them operate within specific geographic regions. That means they have relevant local insights ready to share. CDCs also take a holistic view of their clients’ ventures, so they can provide advice and guidance that extends beyond financing. Our team considers each company’s history, growth goals, industry dynamics, marketplace competition, and potential opportunities to be leveraged. With that complete picture in mind, we can help clients secure funding not just for any building, but the space that is best suited to meet their needs now and well into the future.
As one of the country’s top performing CDCs, our team is ready to help you grow your small business. Connect with our loan officers today.
