This bill changes the Small Business Investment Act to update the SBA 504 development company loan program. It adds workforce development as a program goal, increases certain manufacturing loan limits from $5,500,000 to $10,000,000, and makes several changes meant to help small manufacturers get affordable capital. For small manufacturers the bill lowers the borrower contribution in many cases to 5 percent of project cost (10 percent in one combined case), removes a requirement for additional collateral, allows refinancing of expansion debt up to 100 percent of expansion project cost, and allows debentures guaranteed under the program to equal up to 50 percent of project cost without showing good cause. The bill also expands program goals to include energy efficiency and renewable energy, disaster area aid, and growth of very small businesses (10 or fewer employees).
The bill adds rules to speed and simplify loan closings by letting accredited lender certified companies make limited adjustments (for example, reallocate up to 10 percent of project cost, correct names or addresses, add eligible passive or operating companies, change certain lenders, and add or change guarantors). It shifts responsibility for file reviews to the Office of Credit Risk Management, limits district counsels' role in closing-package review, and allows certified development companies to designate attorneys who may certify closing documents subject to Administrator-set continuing education and a 180-day identification period.
The bill requires each SBA district office to partner with at least one resource partner (such as a small business development center, women's business center, SCORE chapter, or Veteran Business Outreach Center) to provide training to manufacturing firms about applying for and using the 504 program. It revises leasing rules for new facilities and existing buildings, including occupancy thresholds and timing requirements (and a special 50 percent occupancy rule for small manufacturers). Finally, the bill requires a report to Congress within 5 years analyzing the impact of these changes on access to capital.
No publicly available information. The bill text does not include cost estimates or budgetary scoring.
The bill's stated purpose is to improve the loan guaranty program and enhance small manufacturers' access to affordable capital. It adds workforce development, energy efficiency, disaster-area aid, and support for very small businesses to program goals, and it directs SBA offices to provide training to manufacturers. It also aims to streamline closings and clarify oversight and attorney roles.
No publicly available information.