What is SBA 504?
A Small Business Administration program for small businesses acquiring or improving owner-occupied commercial real estate, typically structured as a senior bank loan, an SBA-backed CDC loan, and at least 10% borrower equity. The business must generally occupy 51% (existing) or 60% (new) of the building.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.