Acquisition and development loans

An SBA “Certified Development Company” (CDC) can provide you with long-term, fixed-rate financing for important fixed assets through acquisition and development financing (land, buildings, etc.).

This program includes a loan from a commercial lender that covers 50% percent of the project and a second loan for up to 40% of the project cost from the CDC that is 100% SBA guaranteed for a combined 90% LTV.

Acquisition and development financing is an excellent option for a business that is looking to acquire more land to expand their current operations. The government supports this program because they understand the kind of economic impact a growing business can have on a community.

Funding from an acquisition and development program can be used for:
• Purchasing land and improvements, including existing buildings
• Grading, street improvements
• Utilities, parking lots and landscaping
• Construction of new facilities
• Modernizing, renovating or converting existing facilities
• Purchasing long-term machinery and equipment

The loan program cannot be used for: Working capital or inventory, consolidating or repaying debt, refinancing, employee wages, or marketing expenses. 

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