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The MIchigan Certified Development Corporation through the SBA 504 program provides small- and medium-sized businesses with long-term fixed rate financing for the acquisition or construction of fixed assets. The U.S. Small Business Administration's SBA 504 loan program is a "take out" financing program. After the project is completed, the SBA reimburses, or "takes out," the participating lender by the amount of the original loan commitment. SBA offers an up-front commitment to finance a project. The participating private lender provides interim financing, advancing the full amount of project funds during the construction or acquisition period. Loans are actually funded by the sale of 100% federally guaranteed debentures on the open market. Projects are financed through a unique public/private partnership that involves private lenders financing 50% of project costs, CDC/SBA covering up to 40%, and small businesses investing at least 10%. By taking a secondary collateral position on project assets, SBA provides a collateral cushion for the primary lender and reduces the amount of equity normally required of the borrower.