Try changing your code to this:

SELECT DISTINCT

C.OldDealerID

,C.NameLong

,C.NameShort

,C.MailingState

,CC.NameFirst

,CC.NameLast

,CC.Phone

,CC.FaxPhone

,MR.Name

,CC.Address

,CC.City

,CC.Zip

,C.MailingStreet

,C.MailingCity

,CC.EMailAddress

,C2.nameshort

--,(SELECT nameshort FROM channels WHERE channelid = c.assignedbranch) AS Facilitator

,C.DateLastReview

,HC.HoldingCoDescription

--Funded, Approved,Conditioned, Declined

/*,(Select Count(C2.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join Contracts2 c2 on a.AppID = c2.AppID Where Channels.ChannelID = c.ChannelID and c2.DateContractFunded > (Select dateadd(yy,-1,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0))) and c2.DateContractFunded < (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0))) ) As FundedLastYear

,(Select Count(ad.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join AppDetails ad on a.AppID = ad.AppID Where Channels.ChannelID = c.ChannelID and StatusAppDetail = 'A' and DateDetailDisposed > (Select dateadd(yy,-1,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0))) and DateDetailDisposed < (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0)))) As ApprovedLastYear

,(Select Count(ad.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join AppDetails ad on a.AppID = ad.AppID Where Channels.ChannelID = c.ChannelID and StatusAppDetail ='I' and DateDetailDisposed > (Select dateadd(yy,-1,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0))) and DateDetailDisposed < (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0)))) As ConditionedLastYear

,(Select Count(ad.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join AppDetails ad on a.AppID = ad.AppID Where Channels.ChannelID = c.ChannelID and StatusAppDetail = 'D' and DateDetailDisposed > (Select dateadd(yy,-1,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0))) and DateDetailDisposed < (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0)))) As DeclinedLastYear

,(Select Count(C2.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join Contracts2 c2 on a.AppID = c2.AppID Where Channels.ChannelID = c.ChannelID and c2.DateContractFunded > (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0))) ) As FundedThisYear

,(Select Count(ad.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join AppDetails ad on a.AppID = ad.AppID Where Channels.ChannelID = c.ChannelID and StatusAppDetail = 'A' and DateDetailDisposed > (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0)))) As ApprovedThisYear

,(Select Count(ad.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join AppDetails ad on a.AppID = ad.AppID Where Channels.ChannelID = c.ChannelID and StatusAppDetail ='I' and DateDetailDisposed > (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0)))) As ConditionedThisYear

,(Select Count(ad.AppID) From Channels c left join Applications a on c.ChannelID = a.SourceID left join AppDetails ad on a.AppID = ad.AppID Where Channels.ChannelID = c.ChannelID and StatusAppDetail = 'D' and DateDetailDisposed > (Select dateadd(ms,-3,DATEADD(yy, DATEDIFF(yy,0,getdate() ), 0)))) As DeclinedThisYear

*/

FROM Channels AS C

INNER JOIN ChannelContacts AS CC ON C.ChannelID = CC.ChannelID

INNER JOIN ChannelProductPlan AS CPP ON C.ChannelID = CPP.ChannelID

INNER JOIN tblLuMktReps AS MR ON C.MarketRepID = MR.MarketRepID

INNER JOIN tblLuHoldingCo AS HC ON C.HoldingCoID = HC.HoldingCoID

INNER JOIN channels C2 ON c.assignedbranch = C2.channelid

WHERE

C.ChannelType IN (1, 6)

AND C.OldDealerID <> 1234

AND C.ActiveFlag = 'Y'

AND CC.Relationship = 1

ORDER BY C.OldDealerID

The in-line query essentially causes a loop.

Why are you using DISTINCT?