Check the S.O.P. Q&A

Q - Does the third party lender (the bank, non-bank lender, etc.) in a 504 loan project have to be on the SBA’s approved lenders’ list?

A - No. A major difference between the SBA’s 7a loan guaranty programs and the SBA 504 loan program is the fact that any responsible financial institution or individual can act as the third party lender and take advantage of the 504 benefits without being first approved by the SBA. Under the SBA 7a loan guaranty program, the lender must be first approved by the SBA before being able to participate.

This is just one of the many advantages to lenders when using the 504 program to finance purchases and improvements or real property and the purchase of heavy equipment.