Glossary · The loan itself
In short
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.
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).
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so 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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