The Small Business Administration (SBA) 504 loan program aims to drive urban economic development and job creation by supporting the expansion of small businesses. This program leverages SBA's guarantee authority alongside the capital formation capabilities of commercial banks and public finance markets to provide long-term fixed-asset financing. SBA 504 loan resources are generated through the issuance of government-guaranteed debentures, which are pooled monthly and sold to the public market via a certificate mechanism.
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