What is a sba 504 loan?

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8th Nov 2009 by Joseph Pousada

The Small Business Administration (SBA) offers a variety of loan guarantee programs, one of which is the CDC504 program. The loans are designed for small businesses and are targeted towards what an accountant would classify as a “fixed asset”. A small local florist looking to repave their parking lot and create an extension to their retail front to expand their product line in their store would qualify as fixed assets. The same florist looking to pay for inventory supplies with a 504 loan would not qualify. A small day care business looking to invest in expanding the playground for the business would qualify as a fixed asset. The same day care business looking to use a 504 loan to refinance a previously built playground would not qualify. The general purpose of these loans is to help small businesses with the intent to expand or enhance their business with fixed assets.


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