Certified Development Companies bring more than 504

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 their role in providing SBA 504 loans to small businesses.

The National Association of Development Companies (NADCO) is the trade association for the nation's Certified Development Companies (CDCs). Members, such as Evergreen Business Capital, 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.

There were 137 out of a total of 247 CDCs represented in the study - or approximately 55% participation. CDCs were asked to provide data on the number of loans funded, the dollar amount of loans they funded from the time they began offering the loans until December 31, 2008. The total project dollar amount funded for this time period was also requested. In spite of having only a little over half of the CDC industry represented in the analysis, the information gathered on the range of financing programs and services offered by these dynamic organizations was impressive.

NADCO found that CDCs participate in a stunning number of state, local, federal and self-funded financing programs. They also offer a broad range of services to small businesses including business incubators, training, counseling, small business resource centers, contract procurement and technical assistance centers and as well as help expanding into global markets through foreign trade zone assistance. Some also offer community housing assistance through low-income housing development, first-time home buyer mortgage programs, etc.

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 is over $118 billion to 128,155 small businesses.

The entire publication can be found here.