MCDC Programs

The U.S. Small Business Administration (SBA) has two flagship programs designed to assist small businesses in obtaining financing. MCDC is a leader in granting Michigan small businesses both types of loans. Read more about each program and contact MCDC for more information.

SBA 7a Loan

Granted by a business lender and partially guaranteed by the federal government, SBA 7(a) loans are a great fit for start-ups. They require little or no down payment and offer tremendous flexibility. As long as the use of the funds relates to the business, the loan can be used for just about anything.

  • SBA 7(a) loans are capped at $5 million and will be administered by MCDC throughout the term of the loan.

SBA 504 Loan

Typically used for expansion or modernization, the SBA 504 loan offers long-term, fixed-rate financing for the acquisition of fixed assets, such as real estate and equipment. To finance the loan, MCDC partners with a commercial lender -- most often a bank or credit union -- to provide a second lien for up to 40 percent of the total project. The commercial lender funds 50 percent or more of the project and the small business pays at least 10 percent in the form of a down payment.

  • 504 loans are capped at $5 million, however projects may cost up to $20 million.