The SBA 504 loan is distinguished from other SBA loan programs in these ways: Lower down payment; allows a business to conserve valuable operating capital by injecting just 10% of total project cost Fixed interest rate; borrower knows cost of occupancy for the next 20 years Interest rate is competitive and usually below market All project costs can be financed, including acquisition (land and building, land and construction of building, renovations, machinery and equipment) and soft costs such as title insurance, legal appraisal, environmental and bridge loan fees. Closing costs may be financed.   Collateral is typically assets financed; allows other assets to be free of liens and available to secure other needed financing Long term; real estate loans are 20-year term, heavy equipment 10 or 20-year term and are self-amortizing  504 program encourages banks and other lenders to make loans in first position on reasonable terms, helps them retain growing customers, and provides CRA credit 504 program benefits the borrower's community through job creation and retention