Glossary · The loan itself
SBA 504 Loan Program
In short
This SBA program provides long-term, fixed-rate financing for major fixed assets like real estate or machinery. It's designed to promote economic development and job creation.
What it means in a deal
While you're using a 7(a) loan for your acquisition, understand that the 504 program is distinct. A 504 loan cannot be used for business acquisitions alone or working capital. It's primarily for owner-occupied commercial real estate and large equipment purchases, often involving a first mortgage from a bank and a second from a Certified Development Company (CDC).
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about SBA 504 Loan Program
- What is the difference between a 7(a) loan and an SBA 504 loan?
- What is the difference between an SBA 7(a) loan and an SBA 504 loan?
- What are the key distinctions between an SBA 7(a) and an SBA 504 loan?
- What is the main difference between an SBA 7(a) loan and an SBA 504 loan?
- Does the SBA 7(a) program have a minimum loan size?
- Is there a minimum loan amount for an SBA 7(a) loan program?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.