WASHINGTON, DC – Today US Representative Angie Craig reintroduced her bipartisan law to improve the Small Business Administration’s 504 loan program. That legislation, the 504 Modernization and Small Manufacturer Enhancement Act, was put in place with representatives Steve Chabot (R-OH), Sharice Davids (D-KS) and Young Kim (R-CA) to improve the loan guarantee program and improve the ability of small manufacturers have access to affordable capital. The bill would increase the maximum loan amounts, streamline the loan process, and provide additional assistance to manufacturers applying for the loan from local Small Business Administration (SBA) county offices, among others.
Rep. Craig is also the lead co-sponsor of the bipartisan 504 Credit Risk Management Improvement Act with Reps. Dan Bishop (R-NC), Sharice Davids (D-KS), and Young Kim (R-CA), which encompasses the provisions of the 504- Loan program clarifies and the role of the Office of Credit Risk Management in the 504 Loan program. The bill would improve overall oversight of the 504 loan program and make participation in small manufacturers easier and safer. Together, these bills would improve a program that encourages the economic development of small manufacturers, job creation and retention, and small business expansion through a tripartite partnership.
“As our small businesses continue to grapple with the effects of the COVID-19 pandemic and economic crisis, we must do everything in our power to support small manufacturers and ensure that the SBA programs available to them are effective and Operate as efficiently as possible, ”said Representative Angie Craig. “I am proud to reintroduce this bipartisan law at the 117th Congress and look forward to bringing it over the finish line for Minnesota’s small manufacturers.”
“Small manufacturers in Kansas and across the country faced tremendous challenges during the coronavirus pandemic, and many rely on SBA programs to keep their businesses afloat. I am proud to introduce this bipartisan legislation with Representatives Craig, Chabot and Kim to improve the 504 loan program and make it more accessible to the small manufacturers who need it, “said Representative Sharice Davids.
“The COVID-19 pandemic brought many small businesses into trouble through no fault of their own. We must do everything in our power to provide our small businesses with the resources and support they need to keep their doors open, ”said Rep Young Kim. “California’s 39th District is home to many small manufacturers who make everything from the clothes we wear to the technology that drives our lives, and these companies are the source of hundreds of high-paying jobs. I am proud to share with my colleagues these two important bipartisan bills to improve the SBA’s 504 loan program and help our small businesses get the relief they deserve. “
In particular the 504 Modernization and Small Manufacturer Improvement Act:
• Increases the maximum loan amount to $ 6.5 million for small manufacturers
• Requires SBA District Offices to work with SBA Resource Partners to help small manufacturers grow their businesses
• Reduces project costs for small manufacturers and adapts requirements for creating / maintaining jobs for small manufacturers
• Adaptation of building usage standards, security requirements and rescheduling parameters for small manufacturers
• Streamlines numerous administrative processes related to the 504 loan closure by allowing accredited certified development companies to perform a variety of closure-related tasks, such as: B. the reduction of project costs.