SBA fully guarantees debentures (the 504 portion of the loan) for up to 40% of project costs not to exceed $1.5 million for most businesses, $2 million for businesses that meet specific public policy goals, and $4 million for manufacturers. Remaining funds are provided by the borrower (10-20 percent) and private capital resources (50 percent) secured by a first lien.

Generally, a business must create or retain one job for every $50,000 of 504 funding.  Interest rates are pegged to an increment above the current market rate for 5- and 10-year U.S. Treasury issues.  Maturities of 10 and 20 years are available.  Fees total approximately three percent of the debenture and are financed in the loan.  Project assets are used as collateral.