504 Loans are a type of financing designed to help small businesses acquire fixed assets, such as real estate or equipment. These loans are part of the Small Business Administration (SBA) program and typically involve a partnership between a lender, a certified development company (CDC), and the borrower. The structure of a 504 Loan usually includes a 50% loan from a bank, 40% from a CDC, and a 10% down payment from the borrower. This arrangement allows small businesses to access long-term, low-interest financing while keeping their cash flow intact for other operational needs.