The Regional Development Company (RDC) is a Certified Development Company (CDC.)  CDCs are regional economic development organizations that are licensed by the U.S. Small Business Administration (SBA). CDCs cover various geographic regions that can range from a single county in a state to a multi-state region.

The RDC makes loans under the SBA 504 loan program to assist small business. The RDC processes, approves, closes and services all loans. Funding is arranged by the RDC through the Central Servicing Agent whom issues a bond.  In all ways, the RDC is the direct lender for the SBA 504 loan program.

• Purchase land and buildings

• Construct new facility

• Improvement or expansion to building

• Purchase large equipment

• Refinance of commercial real estate and equipment

The SBA 504 portion of your project can be up to $5 million, or $5.5 million if your business meets an approved public policy goal or qualifies as a manufacturer.

There is no overall limit on the total project size.

For-profit, owner-occupied businesses are eligible if they have a net worth of $20 million or less with an average annual net profit after taxes of $6.5 million or less.

The SBA 504 Loan Program offers fixed-rate interest and terms of 10, 20, and 25-years on real estate and 10-year terms for equipment.

The traditional down payment for a SBA 504 project is 10% of the project cost from the borrower. However, the SBA requires a 15% down payment for start-up businesses (less than two years of ownership) or when the business is operating in a special-purpose property (for example: gas station, hotel or bowling alley).

The RDC serves the entire state of Indiana as well as the Chicagoland region, including the Illinois counties of Cook, Will, Grundy, Kendall, DuPage, Kane, DeKalb, Lake, and McHenry.

A lending institution finances 50%, the RDC finances 40% of the loan, and the borrower injects at least 10% of the loan.