504 Program Level Flexibility

Summary#

This bill amends Section 503 of the Small Business Investment Act of 1958 to give the Administrator of the Small Business Administration (SBA) limited authority to increase the agency's annual commitments for loans guaranteed under the 504 program. Beginning in fiscal year 2027, if the Administrator determines that demand could make commitments exceed the statutory or appropriated limit for a fiscal year, the Administrator may make commitments up to 115 percent of that limit. The Administrator must give at least 30 days notice to the Senate and House Small Business and Appropriations committees before using this authority. The Administrator may use this authority no more than once in any fiscal year.

What it means for you#

• If you are a small business seeking a 504 loan, this change could allow the SBA to commit to more 504 loans in a year when demand would otherwise push commitments past the usual cap.
• The change applies to commitments the SBA makes to guarantee loans made through qualified State or local development companies (often called Certified Development Companies).
• The SBA must notify key congressional committees 30 days before using the expanded authority.

Expenses#

No publicly available information on budgetary cost estimates or specific fiscal effects is included in the bill text or provided metadata.

Proponents' View#

No publicly available information on proponents' statements or formal rationale is included in the bill text or provided metadata.

Opponents' View#

No publicly available information on opponents' statements or objections is included in the bill text or provided metadata.