{"ok":true,"canonical_url":"https://dealroom.so/glossary/sba-504-loan","api_url":"https://dealroom.so/api/public/glossary/sba-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":"sba-504-loan","term":"SBA 504 loan","group":"The loan itself","definition":"A different SBA loan program primarily for long-term, fixed-asset financing, like real estate or heavy machinery. It's not typically used for business acquisitions with working capital needs.","what_it_means":"The SBA 504 program involves a bank loan, a loan from a Certified Development Company (CDC), and your equity. While great for owner-occupied commercial real estate, it's distinct from a 7(a) loan, which is the standard for most small business acquisitions. Focus on the 7(a) for buying a business.","url":"https://dealroom.so/glossary/sba-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":"terms-conditions-eligibility","title":"7(a) Loan Program — Terms, Conditions, and Eligibility","official_url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility","official_label":"View on SBA.gov","authority_tier":5,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/terms-conditions-eligibility"}],"related":[{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"certified-development-company","term":"Certified Development Company","url":"https://dealroom.so/glossary/certified-development-company"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"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":"Does the SBA check for past defaults on federal debts, like student loans or prior SBA loans?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-for-past-defaults-on-federal-debts-like-student-loans-or-prior-sba-loan"}]},"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 — SBA 504 loan","url":"https://dealroom.so/glossary/sba-504-loan","source_type":"DealRoom Data"}}