SBA Loan Closings (Session 1): An Overview of the SBA 504 and 7(a) Loan Programs

• 1 Economic development focus of 504 loans and eligibility for long‑term fixed assets and job creation
• 2 EPC/OC borrower structure where a passive company owns the project and the operating company leases it
• 3 504 funded by pooled debentures sold on the NYSE with full government guarantee while 7(a) uses lender funds with partial SBA guaranty
• 4 CDC classifications and authorities including ALP limited authority, PCLP unilateral authority with loan loss reserve, and ASM streamlined submissions

Based on transcript analysis