Certified Development Corporation
Your preferred lending partner for the SBA 504 Loan Program, with over 50 years combined SBA lending experience.
We are ready to start a project of any complexity. Call us now!(818) 205-1770
Golden State Certified Development Corporation
SBA 504 Loans
Golden State CDC can help your business finance commercial real estate with as little as 10% down-payment; with long-term, below market fixed-rate SBA 504 financing.
We provide services throughout the State of California.
Golden State CDC offers loan packaging and debt placement services for businesses located anywhere in California.
Our business finance experts can help you structure and package your loan request to maximize your probability of gaining approval with the most favorable terms available.
Golden State CDC holds monthly Access to Capital workshop!
Every 2nd Wed of the month from 6PM to 7:30PM
Every 4th Wed of the month from 6PM to 7:30PM
RSVP: please call: (818) 205 – 1770
Space is limited
Presented by seasoned SBA Lender, Jeffrey Francis, MBA
SBA 504 Feb '20 Loan Rate - 3.460% Effective Rate*
The 504 loan rate (effective rate) for 25 year commercial real estate loans is 3.460%
Questions regarding your existing loan with Golden State CDC? Looking to refer a friend?
If your contact information changes at any time, please notify us right away.
Looking to acquire commercial real estate to house your business? The SBA 504 loan program makes it easy. Find out how to buy your own building with as little as 10% down. Need help accessing capital to start or grow for your business? Find out how Golden State CDC can help you access the capital you need.
Golden State CDC offers fast turnaround for your 504 financing project. Our boutique approach allows us to dedicate more time to your project, and help you meet your closing deadlines. We also provide SBA 504 training at your site.
Our mission is to promote the general welfare, wealth and prosperity of the people residing or operating businesses within the State of California, focusing primarily on promoting job creation in underserved and credit-challenged communities.
Founded in 2001, San Fernando Valley Small Business Development Corporation DBA Golden State Certified Development Corporation (“Golden State CDC”) has over 16 years of small business lending and technical assistance experience. With support from its bank partners, Golden State CDC has helped fund over 306 loans totaling $63.7 million with credit enhancement guarantees, resulting in the creation and retention of over 1,500 jobs throughout the State of California.
As a Certified Development Corporation (“CDC”) under the authority of the U.S. Small Business Administration’s 504 loan program, Golden State CDC has leveraged over $102 million in private investment into commercial real estate purchases for small business owners. Additionally, Golden State CDC operates an existing direct small business loan portfolio.
Years SBA Lending & Technical Assistance
Years SBA 504 Lending
Jobs Created and Retained
Frequently Asked Questions
What Is A 504 Loan?
An SBA 504 loan is a 10-percent down, fixed-rate, long-term loan designed to expand capital access – filling a market gap in long-term financing for America’s small businesses.
Since it is fixed-cost and long-term as well as SBA-backed, the 504 is one of the best financing options available for small business owners today.
What is the maximum loan amount?
There is no limit to the total project cost; however, a CDC can lend you up to 40 percent of the project cost with a dollar cap of $5,000,000 depending on the type of project.
CDCs can exceed $5,000,000 and go as high as $5,500,000 of 504 financing for eligible manufacturing projects and for projects that incorporate energy saving technologies for sustainable design.
Rates and Terms
SBA 504 loans are for terms of 10, 20 or 25 years. The interest rate on the SBA 504 loan is set when the SBA sells the bond (debenture) to fund the loan, and the interest rate is then fixed for the duration of the term.
The small business owner’s monthly payment includes program fees and a loan loss subsidy fee which are financed as part of the loan. SBA 504 debentures are fully amortized securities and have no balloon payments. To compare interest rates, see the U.S. Treasury bond rates.
What is the Loan Structure?
Financing for a typical 504 loan is broken into three parts, with only the 10 percent* put down by the borrower. An additional 40 percent is provided by a Certified Development Company (CDC) such as Golden State CDC.
CDCs are non-profit corporations that provide loans to encourage small business growth in their local communities and are unique to the 504 Loan program. The remaining 50 percent is provided by a banking partner.
SBA 504 Loan Structure
Start-ups require additional 5% Borrower down payment. Special-use properties also require additional 5% Borrower down payment.
50% Bank Partner Loan
40% CDC Loan
10% Borrower Down Payment
The SBA/CDC takes a subordinate (second mortgage) to secure its 40% portion of the financing and takes a security interest in assets financed.
Other assets of the business or principals are generally not required. (unless the company is a startup or the credit is unusually risky or the asset being financed is considered a single purpose asset or doesn’t appraise high enough).
Fees and Payments
All of the fees on an SBA 504 loan are added to the loan amount so they are amortized over the loan term and do not represent any “out of pocket” expenses for the small business owner.
Payments on the SBA 504 loan are made by ACH debit from the small business owner’s designated checking account on the first of each month after the loan closes. Payments on the SBA 504 loan are separate from payments on the 50% first mortgage loan.
Please complete this section if you are looking for assistance with:
Please complete this section if you are looking for assistance with:
• SBA 504 Commercial Real Estate purchase or refinance • SBA loans for start-ups, business acquisitions & expansions • Debt Placement • Loan Packaging
Technical Assistance Financial Literacy
Highly Qualified Team
Jeffrey Francis, MBA
President & CEO
Jeffrey Francis, MBA is a seasoned SBA banking professional with over 30 years of industry experience at regional and national banks where he has headed departments with portfolios ranging in size from $40 to $125 million. Jeffrey serves as executive vice president and director of business development at Golden State CDC.
Miguel Juárez serves as president and executive director of San Fernando Valley Small Business Development Corporation dba Golden State CDC. He has worked in the SBA lending industry over 19 years at national and community banks where he developed, negotiated, and underwrote bank debt. He has a thorough understanding of financial analysis, risk management, and SBA standard operating procedures.
Keith Colter, MBA is a seasoned SBA lending executive, who has led SBA departments and developed comprehensive loan policies and procedures to manage portfolio risk. Colter serves as Credit Manager at Golden State CDC.
Colter is the former Chief Lending Officer of SBA & Small Business Services (SBS) at Business Partners, LLC.