{"ok":true,"canonical_url":"https://dealroom.so/glossary/504-loan","api_url":"https://dealroom.so/api/public/glossary/504-loan","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"504-loan","term":"504 Loan","group":"The loan itself","definition":"An SBA loan program designed for long-term fixed asset financing, like real estate or major equipment, typically for expansion. It's different from a 7(a) loan and usually not used for pure business acquisitions without significant real estate.","what_it_means":"While both are SBA programs, a 504 Loan is distinct from your 7(a) loan. It involves a bank lender and a Certified Development Company (CDC) and has specific Use of proceeds rules. Don't confuse it with the 7(a) for buying a business; it's generally unsuitable for working capital or goodwill.","url":"https://dealroom.so/glossary/504-loan","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"}],"related_questions":[{"question":"What is the difference between a 7(a) loan and an SBA 504 loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-a-7-a-loan-and-an-sba-504-loan"},{"question":"What is the difference between an SBA 7(a) loan and an SBA 504 loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-an-sba-7-a-loan-and-an-sba-504-loan"},{"question":"What are the key distinctions between an SBA 7(a) and an SBA 504 loan?","url":"https://dealroom.so/sba-loans/basics/what-are-the-key-distinctions-between-an-sba-7-a-and-an-sba-504-loan"},{"question":"What is the main difference between an SBA 7(a) loan and an SBA 504 loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-main-difference-between-an-sba-7-a-loan-and-an-sba-504-loan"},{"question":"Are SBA 7(a) loans only for businesses unable to get traditional bank loans?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-businesses-unable-to-get-traditional-bank-loans"},{"question":"What exactly is an SBA 7(a) loan, and who offers these loans?","url":"https://dealroom.so/sba-loans/basics/what-exactly-is-an-sba-7-a-loan-and-who-offers-these-loans"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — 504 Loan","url":"https://dealroom.so/glossary/504-loan","source_type":"DealRoom Data"}}