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ExpectMore.govExpectMore.gov home pageEXPECT FEDERAL PROGRAMS TO PERFORM WELL, AND BETTER EVERY YEAR.
Program Assessment

Program

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Section 504 Certified Development Company Guaranteed Loan Program

The 504 Certified Development Company (CDC) program guarantees long-term, fixed rate financing to small businesses for property and heavy machinery purchases.

Rating

What This Rating Means

PERFORMING
Moderately Effective

In general, a program rated Moderately Effective has set ambitious goals and is well-managed. Moderately Effective programs likely need to improve their efficiency or address other problems in the programs' design or management in order to achieve better results.
  • The program has strong loan oversight and management practices. Through a new lender monitoring system, the program can differentiate between well-performing and lagging CDCs, and respond appropriately. Further, cost efficiencies have been gained.
  • Competition among CDCs has increased, resulting in improved borrower access to loans. Regulatory changes implemented in 2004 allowed CDCs to expand their area of operations to the state they are located in, giving borrowers and lenders more choices.

Improvement Plan

About Improvement Plans

We are taking the following actions to improve the performance of the program:

  • SBA is developing the baseline for business longevity outcome measure.

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