SBA 504 Loan Program
The 504 loan program provides long-term, fixed-rate financing for major fixed assets, delivered through Certified Development Companies (CDCs) and participating lenders under the framework. SBA describes it as financing for fixed assets that promote business growth and job creation and sets program parameters such as maximum loan amounts and eligible uses.
- Where it applies
- Federal
- When it comes up
- Acquisition financing; refinance (where permitted); closing
- Property types
- Owner-occupied commercial real estate (and other fixed assets)
In practice
From a real estate underwriting perspective, the owner-occupancy constraint and business operating cash flows are central; it is not a passive investment real estate product.
Related terms
owner-occupiedCDCfixed-rate financingloan maturitycollateral
Commercial Lending
- Acceleration Clause
- Bridge Loan
- Credit Facility
- Debt Service Coverage Ratio (DSCR)
- Net Operating Income (NOI)
- Pari Passu Loan
General information, not legal, tax or financial advice.