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504 Modernization and Small Manufacturer Enhancement Act of 2023
3/12/2024, 7:17 PM
Summary of Bill S 1352
The bill seeks to modernize the 504 loan program by streamlining the application process, reducing paperwork requirements, and increasing access to capital for small manufacturers. It also includes provisions to enhance technical assistance and counseling services for small businesses seeking 504 loans.
Additionally, the bill aims to increase the maximum loan amount available through the 504 program, making it easier for small businesses to finance larger projects. This increase in loan limits will help small manufacturers expand their operations, create jobs, and contribute to economic growth. Overall, Bill 118 s 1352 is designed to support small manufacturers and other small businesses by improving access to affordable financing and reducing administrative burdens. It is a bipartisan effort to strengthen the 504 loan program and help small businesses thrive in the competitive marketplace.
Congressional Summary of S 1352
504 Modernization and Small Manufacturer Enhancement Act of 2023
This bill modifies the Small Business Administration (SBA) 504 Loan Program, which provides a small business with SBA financing—through a certified development company (CDC) intermediary—for expansion or modernization.
Specifically, the bill adds policy goals, at least one of which a CDC must demonstrate to be eligible for assistance. These include (1) enhancing the ability of a small business to reduce costs by using energy efficient products and generating renewable energy, and (2) aiding the revitalization of any area for which a disaster has been declared or determined. The bill also authorizes a CDC to take specified actions to facilitate the closing of a 504 loan, such as correcting borrower or lender information on loan documents or reallocating up to 10% of the cost of a project.
For small manufacturers, the bill (1) increases the maximum loan amount from $5.5 million to $6.5 million, (2) reduces the amount that they must contribute to project costs, (3) increases job retention requirements, and (4) revises collateral requirements and debt refinancing considerations. Further, each SBA district office must partner with a resource partner to provide certain training for small manufacturers.
