SBA 504 Program And CDC Question
I have a question about the SBA 504 program and how CDC's come into play. From what I understand on a 504 the borrower puts up 10%, the bank 50%, and then the CDC (certified development corp) put up 40%.
Now my question is lets say that the borrower were to default on the loan and the bank were foreclose. Would the bank get payed before the CDC; because wouldnt the bank have the 1st lien, and the CDC the 2nd?
Any help is greatly appreciated 
Thanks
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