Small business owners are the movers and shakers in America - the people with the ideas, energy and drive to build and run a business. Small businesses are also where new jobs are being added to the economy as companies grow and hire more staff.
To support small businesses and to strengthen the economy Congress created the U.S. Small Business Administration (SBA) in 1953 to provide a range of services to small businesses including financing. In 1958 Congress passed the Small Business Investment Act which established what is known today as the SBA 504 loan program.
The SBA 504 loan is designed to assist small business owners obtain long-term financing for capital assets like the purchase of real estate and expensive equipment. Recognizing that small business owners sometimes have more difficulty getting traditional business financing but need funds to grow, the SBA 504 loan provides financing for businesses to make the investment in their own facilities, continue to expand and create new jobs. Small business owners can buy their own building or build a larger facility to accommodate increased sales and more staff. Owning a building also gives a small business owner more of a stake in the community and builds equity The community gets the benefit of additional jobs, business growth and tax revenues from a growing small business.