The Small Business 504 Loan Program provides small companies in development areas with guarantees for loans for major fixed assets such as land and buildings for economic development. The purpose of 504 loans is to improve the economy of a locality or to assist businesses owned by women, minorities, veterans, rural businesses, and other designated types of businesses. The 504 loans are set up to work with Certified Development Companies – nonprofit corporations set up for community development. Generally the project assets are used as collateral.