The Small Business Administration (SBA) 504 loan is part of a government small business program to help put your own business goals within reach. The SBA is a U.S. government body, with the motive of providing support for small businesses and entrepreneurs. For each loan authorized, a government-backed guarantee offers serious credibility, since the lender knows that even if you default, the government will pay off the balance. The 504 loan offers a fixed-rate and long-term financing. These loans are great for applicants whose business model will benefit their community directly, either by providing jobs or bringing needed services to an underserved area. For many small businesses, it is beneficial because this is money and capital that may not be accessible through traditional loans.
