CDC Makes Business Purpose Loans to For-Profit Companies
The Community Development Corporation of Northeast Indiana (CDC) is a City of Fort Wayne sponsored 501 c (6) not for profit business development organization. Our primary objective is to promote the growth and development of small commercial and industrial for-profit businesses in Indiana through creative loan programs. Since our inception in 1978, we have lent over 52 million dollars to small businesses with an additional 131 million of private funds contributed to those projects and we have helped create or retain over 4000 jobs.
NEWS BULLETINS AND INFORMATION ON COMMERCIAL LENDING SOURCES:
Washington, DC – The Senate Committee on Small Business & Entrepreneurship led by Chairman Mary Landrieu (D-LA) and Ranking Member Jim Risch (R-ID) today approved legislation to return a pro-small business commercial real estate loan program to zero subsidy and to reinstate on a permanent basis a popular debt refinancing provision for small enterprises that had expired last year. The legislation would impose fee requirements on SBA certified development companies, which deliver small business commercial real estate loans known as “504” loans, to more rapidly return the federal program to zero subsidy in the federal budget, a status it had held before the financial crisis and the resulting collapse of the commercial real estate market in recent years. The 504 debt refinancing provision, which enabled 2,700 small businesses to refinance $7 billion in old, expensive debt during a temporary period as a result of the 2010 Jobs Act, would be made permanent. It is estimated that reinstating debt refinancing could enable tens of thousands of small businesses to free up capital locked in their facilities to create and retain jobs.
“Sens. Landrieu and Risch have reached across the aisle to advance landmark legislation that will reduce the deficit, create jobs and enable small businesses to access the capital they need to accelerate the U.S. economic recovery,” said National Association of Development Companies (NADCO) President & CEO Beth Solomon. “This bipartisan, fiscally responsible, pro-jobs and pro-small business effort is a model for the Senate and our entire government to follow.”
ABOUT THE CREED ACT
The Commercial Real Estate and Economic Development (CREED) Act, a zero-cost debt refinance program administered by the Small Business Administration, was originally enacted as part of the Small Business Jobs Act of 2010 for a short trial period, enabling over 2,700 businesses to refinance nearly $7 billion in old, expensive debt and unleash capital locked in their real estate that was reinvested into their businesses to create and sustain jobs. The measure literally saved thousands of businesses in communities across the country during the recession, helping them accelerate the economic recovery.
On the Senate side, Senator Mary L. Landrieu (D-LA), Chair of the Senate Committee on Small Business and Entrepreneurship, and Senator Jeanne Shaheen (D-NH), a senior member of the Committee introduced a five-year extension that could offer capital access to over 250,000 additional businesses across the country, saving them up to $20,000 per month. Sen. Johnny Isakson (R-GA) is a co-sponsor. Congresswoman Judy Chu (D-CA) has introduced the House version of the CREED Act (H.R. 1240), along with Congressman Tom Petri (R-WI).
ABOUT THE SBA’s 504 LOAN INITIATIVE
The 504 loan initiative is a self-funded long-term financing tool at no cost to taxpayers providing small businesses with long-term, fixed-rate loans with down payments as low as 10 percent. Certified development companies (CDC) work with the SBA and private sector lenders to provide financing to small businesses under the 504 loan program.
The National Association of Development Companies (NADCO) is the trade association of certified development companies (CDCs) – nonprofit companies that have been certified by the Small Business Administration (SBA) to provide financing for small businesses under the SBA 504 Program. NADCO represents nearly 270 CDCs, serving all 50 states. In 2012, the industry provided $6 billion to nearly 10,000 U.S. small businesses.
Community Development Corporation of Northeast Indiana
Citizens Square | 200 East Berry St., Suite # 320 | Fort Wayne IN 46802 | (260) 427-1125