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Question and Answers on Certified Development Companies Question: How is the Certified Development Company Program different from other SBA programs? Amswer: The Certified Development Company Program operates from a entirely different philosophy. I~s purpose is to provide long-term financing for the start-up and ex- pansion of small businesses in' target.areas. It has more liberal policies regarding the~ase of business or persona] resources than other SBA programs.- in order to encour- age businesses to ex'pand or locate in' the d~ired'area. The program's concept differs from'the:"lender.of last re- sort" philosophy inherent in.many of SBA's other lending activities. Also. the Certified Development Company Pro- gram uses different size standardg than SBA's regular business loan program and can-offer longer loan matur/~ ties. The' program..camboast genuine,community support: and involvemant because it requires-at least 25 members per development company andre lightly defined area of operation. .-" '..'" ' . .: .. Question:' What are the conditions for receiving a guar- anteed 503 debenhn'e?. ':":.':!"-:.g - ----."(;:i: ~- .' ~- ~.~?~-~;_~.,_!!. . . ~,. ~. :.. ~.~ An~wer:._Ttie proceeds of thidehenture must:be of'ira-..: mediate benefit to.an' identifi/~ble small business; and'be. so secured'as, to reasonabli assure, repay~nent, and b~': made:to serve a-sound.busine~s:purpose~,~. -,..~?~. ::.~'., Question;.'D~es a s~nalI'busin~S?hav6:to~provide any ..... pan of t,h,~localihjecfion'to t~car~ied'devalopment,, k:.:,:~ Answer:.- It can~ but.it-i~ [~ualI~ simplar te. use'invoicex or receipts to demous~:ate that~ the,final asset invastment~ in the.project has been:made'lsy the business.' , .. Que~linn: Are the lb~u~proced~es complicated?::~ quirements and t he: applications'~an'zbe, prodessedl rapidly ..' if they cantain.all neqessm-5::~do~e'~ts:~'hen'su!~nnt[~d'~'."