What Actually is an SBA 504 Loan Debenture?

U.S. Small Business Administration (SBA) 504 loans or SBA 504 loans are designed to assist small businesses by offering competitive commercial loans that have low interest rates. Small businesses can use the loans to acquire commercial assets such as offices, machinery, furniture, real estate, machinery, equipment, construction or type of fixed assets to operate their companies. 

In order for us to understand what an SBA 504 loan debenture is, we must first understand the fundamental structure of an SBA loan. Here’s how a SBA 504 loan works.

SBA 504 Loan