Glossary · The loan itself
SBA debenture
In short
A type of bond issued by a Certified Development Company (CDC) and guaranteed by the SBA, used to fund the CDC portion of a 504 loan. It's not part of a 7(a) acquisition loan.
What it means in a deal
When a CDC makes a 504 loan, they sell a debenture to private investors to raise the funds. This is a mechanism specific to the 504 program and irrelevant for your 7(a) business acquisition financing. Your 7(a) loan will be originated and serviced by a bank.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about SBA debenture
- What does the 'SBA' in SBA 7(a) loan actually mean?
- Does being listed on the SBA Franchise Directory guarantee SBA loan approval?
- What does the SBA 'guarantee' mean in an SBA 7(a) loan?
- What is the "SBA" part of an SBA 7(a) loan, exactly?
- What does the 'SBA' part of an SBA 7(a) loan mean?
- Do I submit my SBA 7(a) loan application directly to the SBA?
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.
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