House Unanimously Passes Craig’s Bipartisan Legislation to Improve Small Business Loan Program

WASHINGTON, DC – Today, U.S. Representative Angie Craig's bipartisan bill to improve the Small Business Administration's 504 Loan Program unanimously passed the U.S. House of Representatives. Earlier this year, Craig and Representative Steve Chabot (R-OH) introduced the 504 Modernization and Small Manufacturer Enhancement Act, which would increase maximum loan amounts, streamline the loan process and provide additional support to manufacturers who apply for the loan through local nonprofit Certified Development Companies (CDCs) funded by the Small Business Administration. These improvements will make it easier for businesses to access desperately-needed loans as small businesses in Minnesota and across the country continue to struggle with the COVID-19 economic crisis.

Representative Craig is also the lead cosponsor of the bipartisan 504 Credit Risk Management Improvement Act which also passed the House unanimously today. That bill clarifies provisions of the 504 loan program and the role of the Office of Credit Risk Management. Together, these bills 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 businesses throughout the country continue to struggle with the economic impact of the ongoing COVID-19 crisis," said Representative Angie Craig. "As businesses continue to recover, 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. I'm proud that the House of Representatives unanimously passed my bill today and look forward to continuing my work to support local businesses during this difficult time."

Specifically, this legislation:

• Increases the maximum loan amount for manufacturing loans from $5.5 million to $6.5 million
• Requires SBA District Offices to partner with SBA Resource Partners to provide entrepreneurial development assistance to small manufacturers
• Decreased project costs for small manufacturers and increases 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 correcting any borrower or lender information on loan documents
• Creates an "Express" loan closing program for 504 loans < $500,000