A Multi-State CDC, or Multi-State Certified Development Company, is a type of development company that is incorporated in one state but is authorized by the Small Business Administration (SBA) to operate in an adjacent state. This allows the Multi-State CDC to provide financial assistance through the SBA's 504 Loan Program in areas beyond its state of incorporation, specifically in contiguous local economic areas.
The term Multi-State CDC is primarily used in the context of business lending and economic development. Multi-State CDCs play a crucial role in facilitating loans for small businesses, helping them access funding for real estate and equipment purchases. This term is relevant in areas of business law, particularly those involving financing and economic assistance programs. Users can manage related forms and procedures through resources like US Legal Forms, which provides templates for various legal documents associated with business loans.
Here are a couple of examples of abatement:
For instance, a Multi-State CDC based in Texas may be authorized to operate in Louisiana, allowing it to assist small businesses in both states with funding for expansion projects. (hypothetical example)
Multi-State CDCs are governed by the regulations set forth in Title 13 of the Code of Federal Regulations, specifically 13 CFR 120.802, which outlines the requirements for Certified Development Companies and their operations.
| Term | Definition | Key Differences |
|---|---|---|
| Certified Development Company (CDC) | A company certified by the SBA to provide financing for small businesses. | Multi-State CDCs operate in more than one state, while standard CDCs are limited to their state of incorporation. |
| SBA 504 Loan Program | A loan program that provides long-term, fixed-rate financing for major fixed assets. | Multi-State CDCs are entities that facilitate loans under this program across state lines. |
If you are a small business owner seeking funding and believe a Multi-State CDC may assist you, start by researching CDCs in your state and adjacent states. You can explore US Legal Forms for templates related to business loans and financing agreements. If your situation is complex, consider consulting a legal professional for tailored advice.
Browse our library of 85,000+ state-specific legal templates.
A Multi-State CDC helps small businesses obtain financing through the SBA 504 Loan Program in multiple states.