Dakota Certified Development Corporation

The 504 Program is intended to create and retain jobs through long-term financing of real estate and equipment at a fixed below-market interest rate. Through the CDC, SBA may guarantee up to 40 percent of the total project costs, or from $50,000 to $750,000 (up to $1 Million in certain cases). The business receiving the financial assistance must inject at least 10 percent of the total funds for any project. The balance, usually 50 percent is provided by the local financial institution. Funds are provided for fixed asset financing (land and buildings and in some cases equipment). (more about the 504 Program)

Prequalification loan funds can be used for typical business purposes, such as working capital, debt payment, equipment and inventory purchases,construction, and real estate purchases. Proceeds may not be used for distribution to principals or to pay personal debt. To be eligible, the business must: (1) be at least 51 percent owned and managed by women, (2) meet SBA 7(a) Loan Guaranty Program size standards and general eligibility requirements, and (3) cannot be engaged in speculation or investment in rental real estate. The Dakota Certified Development Corporation is an intermediary for the U.S. Department of Agriculture’s Rural Development Intermediary Relending Program and also provides loan application assistance for participation in the U.S. Small Business Administration’s 7(a) Loan Guaranty Program. (more about the Women's Prequalification Loan Program)

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