Glossary · People and paperwork
Certified Development Company
In short
A non-profit organization authorized by the SBA to administer the 504 loan program. They work with private lenders to provide financing for fixed assets.
What it means in a deal
If your acquisition includes significant owner-occupied commercial real estate, a CDC might be involved in a separate 504 loan. However, for most business acquisitions, your primary lender will be a bank providing a 7(a) loan, not a CDC.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Certified Development Company
- What if the business I'm buying requires significant ongoing research and development?
- Can I use a conditional grant from a local economic development agency as equity?
- What is the role of an SBA Business Development Officer (BDO) in my loan process?
- What is the lender's responsibility for validating the business purpose and use of proceeds certified on SBA Form 1919?
- Are business life insurance premiums generally tax deductible for the company?
- Can an SBA 7(a) loan help me acquire another company?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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