The SBA describes the program thusly: «Typically, a 504 project
includes a loan secured with a senior
lien from a private - sector lender covering up to 50 percent of the project cost, a loan secured with a
junior lien from the CDC (a 100 percent SBA - guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.