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"We would not have been able to purchase this building and expand our business without the assistance of the SBA 504 Loan Program."

- Erick Karlsen, Owner of Quality Windows


Why did Congress Create the 504 Program?

Private commercial real estate lending practices require small businesses to tie up much of their working capital into fixed assets. Why should we care? Because it’s working capital that allows businesses to take advantage of market opportunities (create new jobs), or to adjust to adversities (save existing jobs). Most small business failures are due to lack of working capital. In 1980, these facts led the U.S. Congress to create what is today known as the SBA 504 Loan Program. Requiring just a 10% investment allows the preservation of business working capital, which results in small enterprises growing into larger ones and hiring more employees. This prosperity improves the quality of life of the employer and employee, as well as relieving welfare and unemployment rolls.