Michigan Certified Development Corporation: SBA Lending Record

A certified development company in the SBA file

Michigan Certified Development Corporation is listed with 978 loans approved between FY2017 and FY2026, carrying gross dollars of $784.3 million. Its mix is almost entirely 504: 959 loans, against 19 under 7(a). For a 504 loan, SBA names the certified development company as the lender of record, and the bank providing the first-lien money is not credited. This page therefore describes the development company's slice of such financings as SBA records it, and it says nothing about who held the senior loan.

Asset classes in the 504 record

574 loans have no asset class. Among the classed loans, full-service restaurant has 56, hotel and motel 45, limited-service restaurant 44 and self storage 43. Child care center follows with 30, automotive mechanical repair (car and truck) with 23 and dental office with 22. Car wash accounts for 20 loans and medical office (physicians) for 14. Hotel, self storage and car wash projects are real estate heavy, so a study for any of them spends its time on land and construction cost, stabilised occupancy or throughput, and the appraisal that the 504 structure leans on.

Nearly all in Michigan

Michigan carries 965 of the loans and Ohio 7. No other state appears. This is a record tied almost wholly to one state, and a borrower elsewhere will find nothing in it to rely on. For a Michigan project, the file shows the development company's presence in the state, though the study still has to examine the local site itself.

Cancellations, and a rate that is held back

Of loans approved across FY2017 to FY2024, 16.7% ended in cancellation, a floor, and it reaches 18.7% if the loans not yet disbursed are added, the ceiling. The charge-off side is blank, since Loan Analytics holds that rate back under its own rule, and its absence should never be read as zero. With no cohort figure to show, a borrower cannot judge from this page how well seasoned the book is, and the cancellation figures alone say little about eventual outcomes.

Using a development company record in a study

A 504 financing is assembled from several pieces, so a feasibility study for such a project must show that the whole structure works: market demand, total project cost, combined debt service coverage and a supportable appraisal. The counts here show how active this development company has been across property types. They give no sign of how any single request will be received.