Davids’ Bipartisan Bills to Improve SBA’s 504 Loan Program Pass House
This week, two bipartisan pieces of legislation Rep. Sharice Davids reintroduced with her colleagues last month passed the House. The 504 Modernization and Small Manufacturer Enhancement Act and the 504 Credit Risk Management Improvement Act both help to improve the Small Business Administration’s 504 Loan Program which provides long-term, fixed rate financing for small businesses to promote business growth and job creation.
“Small manufacturers in Kansas and across the country have faced enormous challenges during the coronavirus pandemic, and many are still struggling to keep their businesses afloat. We need to help them access the capital they need now more than ever,” said Davids. “SBA programs like the 504 Loan Program have been a lifeline to small manufacturers, allowing them to grow, create jobs, and contribute to our economy even during these difficult times. We should be doing everything we can to make navigating and utilizing this program as simple as possible.”
The 504 Modernization and Small Manufacturer Enhancement Act, was introduced with Representatives Steve Chabot (R-OH), Angie Craig (D-MN) and Young Kim (R-CA) to improve the loan guaranteed loan program and enhance the ability of small manufacturers to access affordable capital. The bill would increase maximum loan amounts, streamline the loan process, and provide additional support from local Small Business Administration (SBA) District Offices to manufacturers who apply for the loan, among other provisions.
The 504 Credit Risk Management Improvement Act was introduced with Representatives Dan Bishop (R-NC), Angie Craig (D-MN) and Young Kim (R-CA). It clarifies provisions of the 504 Loan Program and the role of the Office of Credit Risk Management in the 504 Loan program. The bill would make improvements to the overall oversight of the 504 loan program making it more accessible and secure for small manufacturers to participate in.
Davids has also worked to support small manufacturers through her bill, the SUPPLIES Act, which would promote the manufacturing of personal protective equipment and medical supplies at small and medium sized businesses in the U.S. She also fought to secure $10 billion for the Defense Production Act in the recently passed American Rescue Plan, which would ramp up domestic production of PPE and other critical supplies, address supply chain shortages, and help restock the national stockpile.