Representative Sharice Davids, Colleagues Reintroduce Bipartisan Bill to Improve the SBA’s 504 Loan Program
Representative Sharice Davids helped introduce bipartisan legislation to improve the Small Business Administration’s 504 Loan Program. This legislation, 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.
Representative Davids is also an original cosponsor of the bipartisan 504 Credit Risk Management Improvement Act with Representatives Dan Bishop (R-NC), Angie Craig (D-MN) and Young Kim (R-CA) which 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. 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 manufacturers in Kansas and across the country have faced enormous challenges during the coronavirus pandemic, and many are relying on SBA programs to keep their businesses afloat,” said Representative Sharice Davids. “I'm proud to introduce this bipartisan legislation with Reps. Craig, Chabot, and Kim to help improve the 504 Loan Program and make it more accessible for the small manufactures who need it.”
“As our small businesses continue to struggle with the impact of the COVID-19 pandemic and economic crisis, 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,” said Representative Angie Craig. “I’m proud to reintroduce this bipartisan legislation in the 117th Congress and look forward to getting it over the finish line for Minnesota’s small manufacturers.”
“The COVID-19 pandemic has left many small businesses struggling over the past year through no fault of their own. We must do everything in our power to provide our small businesses the resources and support they need to keep their doors open,” said Representative Young Kim. “The 39th District of California is home to many small manufacturers that produce everything from the clothing we wear to technology powering our lives, and these businesses are the source of hundreds of good-paying jobs. I am proud to introduce these two important, bipartisan bills with my colleagues to improve the SBA’s 504 Loan Program and help our small businesses get the relief they deserve.”
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.
Specifically, the 504 Modernization and Small Manufacturer Enhancement Act would:
- Increases the maximum loan amount to $6.5 million for small manufacturers
- Requires SBA District Offices to partner with SBA Resource Partners to provide entrepreneurial development assistance to small manufacturers
- Decreases project costs for small manufacturers and adjusts 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 reducing project costs.