SBA Certified Development Company (504) Loan Program: Rural Initiative Pilot Program

Local SBA District Offices

SBA Answer Desk:
800.827.5722
answerdesk@sba.gov

The 504 Certified Development Company (CDC) Program provides small businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. 504 Loans are potential options for healthcare practitioners who want to build a new office or expand/renovate an existing medical building.

The Rural Initiative Pilot Program waives some small business regulations in order to expand capital access to eligible rural areas.

504 loans may be used for fixed asset projects such as:

• Purchasing land and improvements, including existing buildings
• Grading, street improvements
• Utilities
• Parking lots and landscaping
• Construction of new facilities, or modernizing, renovating, or converting existing facilities
• Purchasing long-term machinery and equipment
• Consolidating debt under the conditions listed in 13 CFR 120.882, paragraph (e) and repaying or refinancing debt defined as "qualified debt" under 13 CFR 120.882, paragraph (g).

The 504 Program cannot be used for working capital or inventory; investment in rental real estate; or financing of AI-related working capital, intellectual property, or consulting services soft costs. Consolidating, repaying, or refinancing debt that does not meet the definition of "qualified debt" under 13 CFR 120.882, paragraphs (e) and (g).

To be eligible, the business must be operated for profit and fall within the size standards set by the SBA. Consult the program website for specific eligibility requirements.

Loan amounts and terms vary.

Begin the process by contacting the appropriate Local SBA District Offices and asking about the Rural Initiative Pilot Program.