History of the SBA 504 loans

In 1953 the U.S. Small Business Administration was created by Congress to provide services to small businesses. Five years later they established what is known today as the SBA 504 loan program. The SBA 504 Loan Program is an economic development program offering a financing package that stimulates private sector investment in real estate and/or large equipment to increase productivity, create new jobs, and increase the local tax base. The stimulus is provided by making long-term, low down payment, reasonably priced fixed-rate financing to new or expanding businesses which have the highest probability of successfully creating new jobs. Small business owners sometimes have more difficulty getting traditional business financing, the SBA 504 loan provides financing for them.