What is the Community Development Corporation of Fort Wayne (CDC)?
The CDC is a multi-level, government grant supported 501(c)6 nonprofit. The principal objective of the CDC is creating jobs throughout the communities we serve, which is achieved by lending to businesses that are seeking capital to fund start-up operations or expansion of an existing enterprise.
How does a small business obtain a loan from the CDC?
Business lenders at banks, credit unions or other financial institutions are our main source of referrals. Our loan programs are not designed to replace conventional financing, but to work in collaboration with the lender to provide the best options to fulfill the business’ project needs. The business must have applied for funding through conventional sources and have either a turn down letter or a conditional letter of approval from the bank requiring a partnership with the CDC in the financing of a project. The rest of our business referrals come from a variety of sources such as commercial real estate brokers, Certified Public Accountants (CPAs), attorneys, chambers of commerce, business counseling centers, governmental offices and economic development groups.
What types of loans can the CDC make?
CDC loans can fund a variety of business expenses from working capital to building purchase and construction. The CDC portion of the SBA 504 project can be up to 40 percent or $5.5 million, for a total project in excess of $13 million, giving a borrower ninety percent financing as defined in the SBA Standard Operating Procedures (SOP) 50-10-5. The CDC’s four other loan programs have varying limits ranging from $300,000 to as little as $10,000 depending on the project use and location. Many times we are able to combine different programs into one project to give the business the best financial solutions. Many benefits to both the borrower and bank include, but are not limited to, a lower down payment (which allows the business to retain cash on hand for operations), fixed rates for the life of the loan and no early prepayment penalties.
What advice would you give potential applicants interested in receiving any of these benefits?
If the company is a start-up (less than 2 years old), I would recommend discussions with an accountant, attorney and business advisor, because a business plan will need to be submitted with the application. The business owner should be aware of any special licensing or zoning requirements for their business, project and location. Business owners should also file their business name with the State of Indiana to protect against duplicated or fraudulent use of the business name.
Address: Citizens Square, 200 E. Berry St. #320 Fort Wayne, Indiana 46802
Phone: (260) 427-2108