{"ok":true,"canonical_url":"https://dealroom.so/glossary/sba-504-loan-program","api_url":"https://dealroom.so/api/public/glossary/sba-504-loan-program","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-program","term":"SBA 504 Loan Program","group":"The loan itself","definition":"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":"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).","url":"https://dealroom.so/glossary/sba-504-loan-program","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":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"},{"slug":"mortgage","term":"Mortgage","url":"https://dealroom.so/glossary/mortgage"}],"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":"Does the SBA 7(a) program have a minimum loan size?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-program-have-a-minimum-loan-size"},{"question":"Is there a minimum loan amount for an SBA 7(a) loan program?","url":"https://dealroom.so/sba-loans/basics/is-there-a-minimum-loan-amount-for-an-sba-7-a-loan-program"}]},"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 Program","url":"https://dealroom.so/glossary/sba-504-loan-program","source_type":"DealRoom Data"}}