CDC Small Business Finance | Momentus Capital Arvostelua 1

I am a Filipino-American small business owner operating in a challenged community and have faced significant difficulties with CDC since 2023. While planning my post-pandemic expansion, I was advised to withhold payments on an existing mission-oriented loan they secure in order to qualify for additional funding. Following that guidance, my loan went into default. By December 2023, the lender informed me they could not provide additional funding, as I was struggling to pay the existing loan.

Because of the default—caused by misguidance—they were technically able to misclassify my loan as “liquidation” (also stated a misnomer), which act as a barrier by preventing me from accessing other financing options elsewhere. These actions have severely impacted my business growth, credit, and other professional opportunities.

Thanks to guidance from a local federal business loan director, I was able to identify a pathway toward an attempt to resolve this issue. Recovery will take time and I hope it's not too late, but my local representatives are advocating on my behalf.

I share my experience so other small businesses, especially in distressed area may be cautious and aware.

10/31/25: In response to CDC's comment regarding my review:
On July 7, 2023, CDC Small Business Finance stated in writing: “I commend your proactive stance in asking for help before the loan becomes delinquent, but what we discussed can only be accomplished when no payment is received.” “You cannot have it both ways — current account and note modified.” This guidance effectively directed me to skip a payment.

On June 26, 2023: After sharing my expansion plan with CDC:
"John, It is going to take some time to know what the SBA is willing to do. As your loan was sold to an investor, the SBA has to be willing to buy it back and then modify it."
It appears that selling my loan to an investor was unnecessary, as my account was current when I shared my expansion plan to seek additional funding for my trademarked product line and franchise models—both active in commerce with verified partnerships and launch-ready opportunities.

As a result, my SBA-backed loan, serviced by CDC, was placed in “liquidation” status for nearly a year — an action later confirmed by the SBA District Director as “CDC’s error.”