Roger --
Your CD-16 is more than enough for the trip. As long as you are comfortable aboard, it will be perfect. The small size will make stops in towns (tie to the dinghy dock), shallow anchorages, inside sneaks (like along the Jersey coast), and economy a perfect match for the Loop. We completed the Loop back in '92 in a 20' sailboat and it would have been a great trip for us in the smaller CD-16.
Link onto the Great Loop internet site for lots of info (of course, virtually all the discussion is from larger boats but there is useful info there for you).
We have been doing highlight trips along the Loop in our CD-22 and tales are up on the Halcyon Days website.
Two pieces of advice from us:
1. You are already doing -- travel in the smallest boat on which you can be comfortable and resist the 'extra' stuff that encumbers life on a boat (or anywhere, for that matter). KISS
2. Take lots of time -- get off the 'main highway' of the Loop and explore the 'back blocks' -- like circle Manhattan Island, cruise extensively throughout the Carolina Sounds and Chesapeake (don't, for goodness sake, blast through those marvelous areas along the blue line route of the Loop, unless you are doing the Loop just to brag about it). Go up the Cumberland River, the Tennessee, the Tellico -- travel up the Rideau Canal to Ottawa, down the Ottawa River to the St Lawrence, down to Quebec, then back up St Lawrence to Richeleau into Lake Champlain, down the Champ. canal back to the Hudson, then the Erie to Oswego and over to the Trent-Severn. Dawdle in north Channel -- etc. etc. It's the trip of a lifetime -- take a few years, if you have them -- you won't be sorry.
Have fun planning -- its a great adventure -- one of the finest experiences one can ever have on a boat -- and the CD-16 is PERFECT!!
el and bill