FRANCHISE·WATCH·DESK

GLOSSARY

SBA 504 loan

An SBA 504 loan finances major fixed assets — real estate and heavy equipment — through a certified development company, alongside the more common 7(a) program.

Where 7(a) is the general-purpose franchise loan (working capital, build-out, the whole project), 504 funds the property-heavy piece: typically 50% bank loan, 40% CDC debenture, 10% down. Franchise concepts that own their real estate — car washes, storage, some restaurants — show up in the 504 data heavily.

Both programs' loan-level outcomes are public through FOIA, and both feed the loan records on this site: every 7(a) and 504 loan to a franchisee since 1991, and how each ended.

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