Small Business Administration 504
The CDC/504 loan program, part of the federal Small Business Administration,
is a long-term financing tool for economic development within a community. The 504
Program provides growing businesses with long-term, fixed-rate financing for major
fixed assets, such as land and buildings. A Certified Development Company is a nonprofit
corporation set up to contribute to the economic development of its community. CDCs
work with the SBA and private-sector lenders to provide financing to small businesses.
There are about 270 CDCs nationwide. Each CDC covers a specific geographic area,
go to www.sba.gov
to find one near you.
USDA – Farm Service Agency Guaranteed Loans
FSA guaranteed loans provide lenders (e.g., banks, Farm Credit System institutions,
credit unions) with a guarantee of up to 95 percent of the loss of principal and
interest on a loan. Farmers and ranchers apply to an agricultural lender, which
then arranges for the guarantee. The FSA guarantee permits lenders to make agricultural
credit available to farmers who do not meet the lender's normal underwriting criteria.
FSA guaranteed loans are for both Farm Ownership and Operating purposes. Like the
Direct Loan Program, a percentage of Guaranteed Loan funds is targeted to beginning
farmers and ranchers and minority applicants.
USDA – Farm Service Agency Direct Loans
"Direct" farm loans are made by FSA with Government funds. The FSA also services
these loans and provides their Direct loan customers with supervision and credit
counseling so they have a better chance for success. Farm Ownership, Operating,
Emergency and Youth loans are the main types of loans available under the Direct
program. Direct loan funds are also set aside each year for loans to minority
applicants and beginning farmers.