A Certified Development Company (CDC) plays an important role in the 504 loan process. CDCs are non-profit organizations that are certified and regulated by the SBA to promote economic development in the regions they serve. They offer the SBA 504 loan to companies that meet the eligibility requirements. Local banks and other traditional lenders work with CDCs to fulfill terms of SBA 504 loans, which greatly increases the size of projects funded by the SBA 504. CDCs are responsible for operating, being audited, and managing funds generated from SBA 504 loans.