SBA GLOSSARY
SBA 504
SBA 504 Loan Program
A program generally supporting eligible owner-occupied real estate and major fixed assets.
What does SBA 504 mean?
A program generally supporting eligible owner-occupied real estate and major fixed assets. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
SBA 504 in context
A manufacturer may finance an owner-occupied facility through a bank and Certified Development Company structure.
Why it matters in financing
SBA 504 can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related sba terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.