The SBA 504 Loan Program promotes local economic development by providing long-term fixed-rate financing to expanding small businesses. More specifically, the SBA 504 Loan is designed to assist small businesses that will be financing the acquisition of owner-occupied facilities and that will create or retain valuable jobs within the community.

The 504 Loan was created by the U.S. Small Business Administration’s Development Company Program, which is authorized by Title V of the Small Business Investment Act; Title V is the section from which the program’s common name of “504 Loan” is derived. The SBA 504 Loan Program has the lowest default and loss rate of any of SBA’s financing programs.

An eligible borrower obtains a 504 Loan by providing application information to a Certified Development Company.