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SBA Loan. Definition: Term loans from a bank or commercial lending institution that the SBA guarantees as much as 80 percent of the loan principal for . SBA financing programs vary depending on a borrower's needs.
For the SBA 504. The SBA 504 program is two loans: 1  Wells Fargo will provide 50% of the financing â a first trust deed on the subject property.  The SBA will provide 40% of the financing, administered through a Certified Development Company (CDC) that will work with you and Wells Fargo.