Canonical program record
SBA 504 Loan Program
Certified Development Companies and senior lenders provide long-term repayable financing for qualifying owner-used fixed assets.
What this mechanism does
- Mechanism type
- Loan
- Economic effect
- Finance the remaining cost
- Administrator
- U.S. Small Business Administration, Certified Development Companies, and participating lenders
- Amount or value
- Long-term fixed-asset financing with an SBA 504 loan amount up to $5.5 million for qualifying projects.
- Cash-flow timing
- Loan proceeds are disbursed through the closing structure and repaid over available 10-, 20-, or 25-year terms.
- Upfront cash
- Required
- Repayment
- Required under the financing terms
- Program lifecycle
- Current / rolling
- Visitor treatment
- Worth checking now
This current pathway still requires program-specific eligibility and sequence checks.
Important dates and consequences
SBA 7(a)/504 coordination policy effective July 4, 2026
Date or range2026-07-04
Only qualifying transactions completed under the policy and lender sequence may use coordinated limits; ordinary 504 and CDC underwriting still applies.
Date last verified
SBA 7(a)/504 coordination policy scheduled to expire August 1, 2027
Date or range2027-08-01
Transactions closing after this date require a fresh SBA policy review before coordinated limits are discussed.
Date last verified
Project fit and limits
Eligibility conditions to confirm
- The business must be an eligible for-profit operating small business located in the United States.
- The project must involve qualifying owner-used fixed assets and the borrower must demonstrate repayment ability.
- A Certified Development Company and senior lender must structure and approve the transaction.
Eligible costs described by the authority
- Purchase, construction, or renovation of qualifying land and buildings
- Long-term machinery and equipment meeting useful-life requirements
- Certain qualified debt refinancing
Ineligible or excluded costs
- Working capital and inventory
- Speculation, investment rental real estate, and nonqualifying debt
Friction to plan for
- The transaction requires a Certified Development Company, senior lender, borrower contribution, underwriting, and closing.
- It is not working-capital financing.
Stackability evidence
Conditional relationship
Scope: A qualifying capital-intensive transaction under the time-bounded 2026 SBA policy.
The policy can allow coordinated 7(a) and 504 financing with independent limits, but lenders and the Certified Development Company must allocate costs and follow the required sequence.
- The 7(a) loan must be secured first under the policy sequence.
- Each loan retains separate eligibility, underwriting, collateral, and permitted-use requirements.
- The transaction must close while the coordination policy is effective.
Rule last verified