The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides small businesses requiring “brick and mortar” financing with long-term, fixed-rate financing to acquire commercial real estate. 504 loans are facilitated through Certified Development Company’s (CDC). A CDC is a private, nonprofit corporation set up to contribute to the economic development of its community and they work with SBA and private sector lenders to provide financing to small businesses through the 504 program.
SBA 7(a) loans are the most common type of SBA loan. 7(a) loans facilitated through Fidelity Bancorp Funding will be primarily used for real estate acquisitions, business acquisitions, or refinance of commercial real estate. Other SBA eligible uses of proceeds such as working capital, machinery and equipment, furniture and fixtures, and building improvements can be considered by FBF in conjunction with a commercial real estate loan request. Projects are secured by a 1st Deed of Trust/Mortgage on commercial real estate, meeting SBA qualifications, having a maximum Loan to Value of 90%.