Glossary · The loan itself
In short
A type of bond issued by a Certified Development Company (CDC) and guaranteed by the SBA, used to fund the CDC portion of a 504 loan. It's not part of a 7(a) acquisition loan.
When a CDC makes a 504 loan, they sell a debenture to private investors to raise the funds. This is a mechanism specific to the 504 program and irrelevant for your 7(a) business acquisition financing. Your 7(a) loan will be originated and serviced by a bank.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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