Business LendingBureau

504 lending data

Which CDC and which bank do you need for a 504 loan in Kentucky?

The CDCs and first-mortgage banks that actually closed SBA 504 projects in Kentucky, including which pairs work together most often.

Reviewed and updated · How we research this

Short answer

75 SBA 504 projects were approved in Kentucky recently, at a median total project size of $1,130,000. The busiest CDC was Alloy Development Co., Inc with 22 loans, and the most active first-mortgage bank was Republic Bank & Trust Company.

You need two lenders, not one

This is the thing that trips up most first-time 504 borrowers. A 504 project is a stack: a bank provides roughly 50% as a first mortgage, a Certified Development Company provides roughly 40% as an SBA-backed second mortgage, and you put in about 10%. Both institutions have to approve, and they have to be willing to work with each other.

What 504 lending in Kentucky looks like

Computed from SBA 504 loan-level FOIA data released 2026-06-30, covering projects approved fiscal years 2023 to 2026, using data released June 2026.

Total project size is the CDC portion plus the reported third-party first mortgage. Charge-off rates use mature cohorts only.
MeasureKentuckyAll 504 borrowers
Projects approved7522,192
Median CDC portion$509,000$730,000
Median total project$1,130,000$1,642,000
Median term25 years25 years
Share to newer businesses21.3%16.5%
Charge-off rate, mature cohorts10.0%8.0%
Jobs supported645235,155

Which CDCs are active in Kentucky

CDCs are non-profits licensed by the SBA, and they are regional — most serve a defined territory. These are the ones actually closing projects here.

CDCs by 504 projects approved in Kentucky
CDC504 loans, fiscal years 2023 to 2026, using data released June 2026
Alloy Development Co., Inc22
Community Ventures Corporation17
Capital Access Corporation - Kentucky14
Purchase Area Development District10
Premier Capital Corporation6
Indiana Statewide Certified Development Corporation2

Which banks write the first mortgage

The bank half of the stack is a conventional commercial mortgage on the bank's own terms. A bank that has closed dozens of 504s knows the process; one that has closed none will add weeks.

Most active first-mortgage lenders on 504 projects in Kentucky
Bank504 loans, fiscal years 2023 to 2026, using data released June 2026
Republic Bank & Trust Company7
Community Trust Bank, Inc6
Heritage Bank Inc6
Traditional Bank Inc5
First Financial Bank5
First Harrison Bank4
Bank of the Bluegrass & Trust Company4
Stock Yards Bank & Trust Company4

The pairings that actually close

This is the useful part, and it is not published anywhere else. Both lenders have to approve and coordinate two simultaneous closings. Pairs that have already done it together dozens of times are a materially smoother experience than assembling a new combination.

CDC and first-mortgage bank combinations that closed the most 504 projects together in Kentucky, fiscal years 2023 to 2026, using data released June 2026. Both institutions have to say yes for a 504 to fund, so pairs that already work together are the shortest path.
CDC (second mortgage)Bank (first mortgage)Projects together
Alloy Development Co., IncRepublic Bank & Trust Company6
Alloy Development Co., IncHeritage Bank Inc4
Community Ventures CorporationBank of the Bluegrass & Trust Company3
Premier Capital CorporationFirst Harrison Bank3
Capital Access Corporation - KentuckyCommunity Trust Bank, Inc3
Purchase Area Development DistrictFirst Financial Bank3
Community Ventures CorporationTraditional Bank Inc2
Community Ventures CorporationCentral Bank & Trust Co2

How to use this

  1. Call two CDCs from the table above. Ask whether your project type and county are in their territory, and what their current turnaround is.
  2. Ask each CDC which banks they close with most. Compare their answer to the pairings table — if it matches, you are on a well-worn path.
  3. Check the occupancy rule before anything else. You must occupy at least 51% of an existing building, or 60% of new construction. Investment property is not eligible.
  4. Order the appraisal and Phase I environmental early. They are the most common cause of a delayed 504 closing.
  5. Understand the rate timing. The CDC portion prices at a debenture sale after closing, not at approval. See the rates page for current levels.

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