A 504 Loan is a type of financing designed to help small businesses acquire fixed assets, such as real estate or equipment. It is part of the Small Business Administration (SBA) loan programs and typically involves a partnership between a lender, a certified development company (CDC), and the borrower. The loan usually covers up to 90% of the project cost, making it easier for businesses to invest in growth. These loans have favorable terms, including low down payments and fixed interest rates, which can help small businesses manage their cash flow more effectively. The 504 Loan program aims to promote economic development and job creation by supporting small business investments.