New York Business Development Corporation

Empire State Certified Development Corporation

Empire State Certified Development Corporation (Empire State CDC) doing business as The 504 Company, is a not-for-profit corporation established by New York Business Development Corporation (NYBDC) in 1981. Empire State CDC is licensed by the U.S. Small Business Administration (SBA) to provide the SBA 504 Loan Program to eligible businesses in New York State.

The SBA 504 Loan Program is a fixed-asset economic development program designed to promote growth and job creation in small and medium-size businesses.

Empire State CDC is a national leader in loan approvals for this program.

This program should be used by businesses with good track records and promising growth opportunities. Empire State CDC, in partnership with your bank, can provide fixed-rate, low down payment financing for buildings and equipment.

PROGRAM HIGHLIGHTS

LOAN AMOUNTS

Preservation of valuable working capital
Fully amortized loans; no balloon payments
Up to 90% financing for fixed assets
Attractive fixed-interest rates
Extended repayment terms
Lowers risk for bank
No mortgage recording tax for acquired property

$1.5 million for standard loans

$2 million for public policy loans*

$4 million for manufacturing loans

*The public policy loan limits relate to businesses that include, but are not limited to, minority-owned, women-owned, veteran-owned, or located in rural or economic development areas.

USE OF FUNDS

INTEREST RATES

Land acquisitions and improvements
Building acquisition and/or construction
Machinery and equipment

(Note: Not available for refinancing debt)

The Empire State CDC second mortgage interest rate is fixed at the time of funding at a rate tied to Treasury securities ranging between 240 and 300 basis points over the 10-year Treasury rate for real estate and the 5-year rate Treasury rate for equipment.

LOAN STRUCTURE

REPAYMENT TERMS

Bank and/or NYBDC	50% (1st Mtg. or Lien)
ESCDC/SBA 504	40% (2nd Mtg. or Lien)
Owner’s Equity	10%
	100%

20 years for real estate
10 years for machinery and equipment
No balloon payments

Click on “Building Acquisition or Construction” and "Equipment Acquisitions" for more detail about the 504 Loan Program.