Crater Development Company
The Crater Development Company (CDC) is a private non-profit corporation that is the business loan affiliate of Crater PDC. The purpose of CDC's loan programs is to stimulate the growth and expansion of small businesses in the area by creating additional jobs, increasing the local tax base, and expanding business ownership opportunities.
CDC has two loan programs to assist small businesses; the Crater Revolving Loan Fund (RLF) and the SBA 504 Loan Program.
Crater Revolving Loan Fund
The RLF Program is for fixed asset and/or working capital projects. Projects range from $50,000 to $500,000+.
Location: EDA eligible areas including the Cities of Emporia, Hopewell and Petersburg and the Counties of Greensville, Surry, and Sussex
Applicants: For-profit commercial, service, manufacturing and distribution business.
Uses: Fixed assets and working capital
Structure: Direct, subordinated loans up to $250,000. Bank funds 40 to 70%, usually 50%, and CDC RLF provides up to 50%, usually 40%, minimum equity of 10%
Term: Up to 20 years based on useful life of assets, generally match bank's term.
Rate: Fixed at prime or higher (4% minimum), 5 year adjustable
Collateral: Second lien on assets being financed, guarantees
Jobs: 1 full time equivalent job for each $35,000 of RLF funds
Other: EEO, non-relocation, federal prevailing wage required for construction projects
Application fee: $200 non-refundable fee due with application
Closing costs: 1 1/2% loan fee, applicant responsible for closing costs; $1,500 average for WC and M&E, $2,500 for RE.
Application Instructions
Application Form
Personal Resume Form
Contact: Jim McClure
(804) 861-1668
jmcclure@craterpdc.org
SBA 504 Loan Program
The 504 Program is for fixed asset financing for projects ranging from $120,000 to $10,000,000+.
Location: Commonwealth of Virginia
Applicant: For-profit retail, commercial, service, manufacturing and distribution businesses
Uses: Fixed assets; land and buildings, and machinery and equipment with a useful life of 10 years or more
Structure: Direct, subordinated loan up to $15,000,000; and $5,500,000 for manufacturers and energy projects; minimum of $50,000. Bank generally provides 50%, 504 provides 40%, and equity is 10%. Additional equity required if buildings are special purpose and/or the business is less than 2 years old.
Term: 20 years for real estate, minimum bank term of 10 years; 10 years for M&E, minimum bank term of 7 years.
Rate: Fixed, RE approximately 10 year TBI + 2.9%, M&E approximately 5 year TBI + 2.9%.
Collateral: Subordinated lien on fixed assets financed, corporate and personal guarantees.
Jobs: $65,000 in 504 financing for each full time equivalent job and/or meet other program goals; $100,000 per job for manufacturers.
Application Deposit: 1% of 504 loan up to $2,500 due with application, refundable.
Closing costs: 2.65% and up to $2,500 in closing costs which may be added to the loan and financed
Application Instructions
Application Form
Personal Resume Form
Contact: Jim McClure
(804) 861-1668
jmcclure@craterpdc.org
