NEDCO (Northeastern Economic Development Company)

What NEDCO (Northeastern Economic Development Company) does

NEDCO (Northeastern Economic Development Company) is a non-profit Certified Development Company (CDC) that facilitates SBA 504 loans for small businesses across Northeastern and Central Pennsylvania. Founded in 2002 and headquartered in Dunmore, PA, with operational presence in Moosic, PA, NEDCO has closed 489 SBA 504 loans since inception. The organization operates with a small team of approximately 5 employees possessing 40 years of combined lending experience and holds an A+ BBB rating. Its core product is long-term, fixed-rate SBA 504 financing of up to $5 million with terms up to 25 years, delivered through a tripartite structure in which a commercial lender provides 50% of the capital, NEDCO's CDC retains a 40% participation, and the borrower contributes 10%.

NEDCO generates revenue through interest income on the 40% CDC participation retained in each originated loan, supplemented by loan servicing fees. Current posted rates are 6.041% for 25-year terms, 6.110% for 20-year terms, 6.476% for 10-year terms, and 6.070% for refinance products. The company has expanded its product portfolio beyond core SBA 504 lending to include SBA Microloans for non-profit childcare centers, Green Efficiency Loans, 504 Bridge Loans, and Business Debt Refinancing. Commercial lender partnerships with regional institutions such as Centric Bank and PS Bank are central to origination, as these partners contribute the majority of loan capital under the SBA 504 structure. Borrower-facing tools include an online Loan Calculator to support self-service pricing transparency.

Name

NEDCO (Northeastern Economic Development Company)

Legal name

Northeastern Economic Development Company

Website

https://nedcocdc.com

Company type

Private

Founded year

2002

Operating status

Operating

Headcount range

1–10 employees

Short description

NEDCO is a non-profit Certified Development Company facilitating SBA 504 loans up to $5 million for small businesses across Northeastern and Central Pennsylvania, using a tripartite structure with regional commercial lender partners.

Ownership category

akta.pro rank

Product category

Small Business Lending (SBA 504 Loans)

NAICS

Sales Financing (52222)

SIC

Federal & Federally-Sponsored Credit Agencies (6111), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

akta.pro secondary industries

National/Regional Development Finance Institutions (DFIs) (FSABAKAB), SBA/USDA Government-Backed Loan Intermediation (FSAEAEAI)

Keywords

• SBA 504 loans
• Commercial real estate financing
• Small business lending
• Certified Development Company
• Fixed asset financing

Headquarters

HQ city

Dunmore

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D

Revenue model

1. SBA 504 Loan Origination and Servicing: NEDCO generates revenue through the origination and servicing of SBA 504 loans. As a Certified Development Company, NEDCO provides up to 40% of project financing through second mortgages backed by the SBA. Revenue is derived from interest on the CDC loan portion and servicing fees.
2. Interest Income on CDC Loan Portion: NEDCO earns interest income on the 40% of project costs it finances through the SBA 504 loan program. The interest rates are fixed for loan terms of 10 or 20 years.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels5 records

Core offering

NEDCO is a non-profit SBA-approved Certified Development Company (CDC) that originates and services SBA 504 loans for small businesses in Pennsylvania. It finances up to 40% of project costs (second mortgage) alongside a commercial lender's 50% first mortgage and the borrower's 10% equity contribution, providing long-term, fixed-rate loans (10, 20, or 25 years) for commercial real estate, machinery, equipment, business debt refinancing, and green efficiency projects.

Product overview

NEDCO (Northeastern Economic Development Company) is a Certified Development Company (CDC) that operates as a single unified service offering centered on the SBA 504 Loan Program. The core product is the SBA 504 Loan Program, which provides long-term, fixed-rate financing for small businesses to acquire fixed assets. This is supported by several specialized sub-products including Commercial Real Estate Funding, Machinery & Equipment Funding, Business Debt Refinancing, Green Efficiency Loans, and 504 Bridge Loans. NEDCO also offers SBA Microloans for short-term financing needs and a Loan Calculator tool. All products work together within the SBA 504 ecosystem to serve small business borrowers and commercial lending partners in Northeastern Pennsylvania.

Differentiator

Problem solved

Functional benefit

Products and services

• SBA 504 Loan Program Long-term, fixed-rate financing program for Pennsylvania small businesses to purchase fixed assets such as commercial real estate, machinery, and equipment. Structured as a tripartite partnership: commercial lender provides 50% first mortgage, NEDCO as CDC provides 40% SBA-backed second mortgage, and borrower contributes 10% equity. Loans up to $5 million with terms up to 25 years.
• Commercial Real Estate Funding Financing to buy, build, grow, or renovate occupied commercial property with up to 90% financing through the SBA 504 loan program. For Pennsylvania small business owners seeking to acquire or improve commercial real estate.
• Machinery & Equipment Funding Financing to purchase and install long-lasting machinery and equipment for business operations with up to 90% financing under the SBA 504 program. Targets small businesses needing capital-intensive equipment.
• Business Debt Refinancing Refinancing solution to consolidate existing high-interest commercial debts or refinance commercial mortgages up to 90%, with or without cash-out options. Designed for small businesses seeking to lower interest costs and improve cash flow.
• Green Efficiency Loans Eco-friendly financing for environmentally conscious projects, providing additional financing up to 90% for energy-efficient improvements or renewable energy initiatives under the SBA 504 program.
• 504 Bridge Loans Interim second mortgage financing for commercial lending partners during their transition phase, bridging financing gaps in SBA 504 loan projects. Designed for bank and credit union partners participating in the 504 program.
• SBA Microloans Short-term loans for small businesses and certain not-for-profit childcare centers, providing easier access to funding with favorable terms, competitive interest rates, and flexible repayment plans. A separate SBA product offered alongside the 504 program.

Quantifiable outcome

• 489 loans closed
• +4 more outcomes

Named customers4 records

Segments12 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Four partnerships are on record, tiered core.

• Centric BankcoreChannel Partner/ Reseller/ DistributorCentric Bank serves as a commercial lending partner in SBA 504 loan transactions. Partnered with NEDCO to provide financing to small businesses such as Kadillac Tattoo for commercial real estate acquisition.
• PS BankcoreChannel Partner/ Reseller/ DistributorPS Bank is a commercial lender partner participating in SBA 504 loan programs with NEDCO. Paul Walsh, Commercial Loan Officer/VP, is quoted as trusting NEDCO's underwriting and legal teams for deal closings.
• U.S. Small Business Administration (SBA)coreStrategic or Co-development PartnerThe SBA is the federal agency that administers and guarantees the 504 loan program. NEDCO operates as an SBA-approved Certified Development Company (CDC), with the SBA providing guarantees on the CDC loan portion (up to 40% of project costs).
• Commercial Banks and Credit UnionscoreChannel Partner/ Reseller/ DistributorCommercial lenders provide the first mortgage portion (50%) of SBA 504 loans in partnership with NEDCO. Lenders benefit from first lien position, 50% loan-to-value ratio, reduced collateral risk, and potential CRA credits.

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Central PA Economic Development (CDFI): Pennsylvania-based CDFI providing SBA and government-backed small business loans in Central PA, directly overlapping with NEDCO's Central PA footprint and product mix.
• Grow America (formerly National Development Council): National nonprofit that supports CDCs and provides SBA 504 program guidance and training; comparable nonprofit CDC infrastructure serving similar small-business borrowers.
• CDC Small Business Finance: Multi-state SBA-certified CDC providing SBA 504 loans with the same tripartite lender structure; comparable business model and regulatory framework to NEDCO at greater scale.
• Philadelphia Industrial Development Corporation (PIDC): Pennsylvania-based SBA-certified CDC providing SBA 504 and other financing to small businesses, with overlapping SBA program access and channel-partner bank model.
• Lehigh Valley Economic Development Corporation (LVEDC): Regional Pennsylvania economic development organization offering SBA-backed financing and lender-partner lending, comparable mission and SBA 504 product set.

Emerging players

• Accion: National nonprofit small business lender offering SBA microloans and alternative financing to underserved small businesses, overlapping with NEDCO's microloan offering and nonprofit structure.
• Kiva U.S. Nonprofit crowdfunded microloan platform supporting very small businesses and underserved entrepreneurs; partial overlap with NEDCO's microloan and small-balance borrower segments.
• SmartBiz Loans: Fintech SBA 7(a) lender that streamlines SBA loan origination for banks and borrowers; competes indirectly for the small-balance SBA borrower NEDCO also targets.

Regional players

• Pennsylvania Business Development Authority: Pennsylvania state-level economic development financing authority offering complementary loan programs and state-backed small-business capital within NEDCO's service geography.

Broad incumbents

• SBA Community Advantage / Pacific Community Capital (CDC network): The SBA itself administers and guarantees the 504 program; the broader SBA lending ecosystem (and its network of ~200 CDCs nationally) is the overarching industry context for NEDCO.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/nedco-northeastern-economic-development-company-

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about NEDCO (Northeastern Economic Development Company)