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 and a Certified Development Company (CDC). The loan structure usually includes a 50% loan from a bank, 40% from the CDC, and a 10% down payment from the borrower. These loans are beneficial because they offer long-term, fixed-rate financing, making it easier for small businesses to manage their cash flow. The 504 loan program aims to promote economic development and job creation by providing affordable financing options for business expansion.