Source: United States House of Representatives – Congresswoman Angie Craig (MN-02)
September 16, 2020
Today, U.S. Rep. Angie Craig’s bipartisan legislation to improve the Small Business Administration’s 504 Loan Program passed out of the House Small Business Committee. This legislation, the 504 Modernization and Small Manufacturer Enhancement Act, was introduced last week with Rep. Steve Chabot (R-OH) to increase maximum loan amounts, streamline the loan process and provide additional support to manufacturers who apply for the loan from local Small Business Administration (SBA) District Offices.
Additionally, Rep. Angie Craig is the lead cosponsor of the bipartisan 504 Credit Risk Management Improvement Act, which clarifies provisions of the 504 loan program and clarifies the role of the Office of Credit Risk Management in the 504 Loan program. These improvements will make it easier for businesses to access loans. This bill also passed out of the House Small Business Committee today. Together, these bills would make improvements to a program that promotes the economic development of small manufacturers, job creation and retention and expansion of small businesses through a three-part partnership.
“Small businesses throughout our community have been greatly impacted by COVID-19,” said Rep. Angie Craig. “We must do everything we can to support small manufacturers and ensure that the SBA programs available to them are operating as effectively and efficiently as possible.”
Specifically, this legislation:
- Increases the maximum loan amount for manufacturing loans from $5.5 million to $6.5 million
- Requires SBA District Offices to partner with SBA Resource Partners to provide entrepreneurial development assistance to small manufacturers
- Decreased project costs for small manufacturers and increases the job creation/retention requirements for small manufacturers
- Adjusts building occupancy standards, collateral requirements and debt refinance parameters for small manufacturers
- Streamlines numerous administrative processes associated with the 504 loan closing process by allowing accredited Certified Development Companies to perform numerous closing-related tasks, such as correcting any borrower or lender information on loan documents
- Creates an “Express” loan closing program for 504 loans < $500,00