Client: Southern Development Council

Challenge:

Founded in 1983, Southern Development Council, Inc. (SDC) provides financing for small businesses in Alabama, Mississippi and the panhandle counties of Florida. SDC relies heavily on the SBA 504 loan program to help qualifying businesses fund capital improvements, real estate acquisition and new construction. SDC wanted to find alternative financing options for deserving borrowers, who didn’t meet SBA 504 lending criteria.

Solution:

CRF allowed SDC to expand their lending capabilities beyond SBA 504 loans. CRF’s Business Loans give SDC greater flexibility and more opportunities to get deals done. In fact, SDC often uses CRF loans as a catalyst for securing the portion of a financial package that comes from traditional lenders, such as banks. If SDC can complete their second-position loan before traditional lenders approve their first-position financing, it helps banks migrate their perceived risk and move forward more rapidly with the loan. With all of the problems associated with rebuilding the Gulf Coast after Hurricane Katrina, CRF gives SDC alternative financing options SDC would not otherwise have.

Community Impact:

Since CRF began working with SDC June 2006, we have underwritten 6 loans totaling more than $7,109,250. The funding helped three low-income communities create or retain 305 jobs.

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