IIB 
117TH CONGRESS 
1ST SESSION H. R. 1490 
IN THE SENATE OF THE UNITED STATES 
APRIL 19, 2021 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
AN ACT 
To amend the Small Business Investment Act of 1958 to 
improve the loan guaranty program, enhance the ability 
of small manufacturers to access affordable capital, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘504 Modernization and 
Small Manufacturer Enhancement Act of 2021’’. 
SEC. 2. ADDITIONS TO POLICY GOALS FOR THE DEVELOP-
MENT COMPANY PROGRAM. 
Section 501(d)(3) of the Small Business Investment 
Act of 1958 (15 U.S.C. 695(d)(3)) is amended— 
(1) by redesignating subparagraphs (A) through 
(L) as subparagraphs (B) through (M), respectively; 
(2) by inserting before subparagraph (B) (as so 
redesignated) the following: 
‘‘(A) workforce development through work- 
based or work-integrated training, which shall 
be satisfied by demonstrating that a small busi-
ness concern that is a subject of the project 
has— 
‘‘(i) a documented in-house training 
program, the duration of which is not 
shorter than 12 weeks; or 
‘‘(ii) entered into a contract with an 
entity— 
‘‘(I) to provide trained applicants 
for any open position of employment 
at the small business concern; and 
‘‘(II) that ensures that any appli-
cant provided to the small business 
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concern under subclause (I) has un-
dergone not fewer than 12 weeks of 
training that is relevant to the open 
position described in that subclause,’’; 
(3) by amending subparagraph (D) (as so re-
designated) to read as follows: 
‘‘(D) expansion of minority-owned, em-
ployee-owned, or women-owned business devel-
opment,’’; 
(4) in subparagraph (L) (as so redesignated), 
by striking ‘‘producers, or’’ and inserting ‘‘pro-
ducers,’’; 
(5) in subparagraph (M) (as so redesignated), 
by striking the period at the end and inserting a 
comma; 
(6) by inserting after subparagraph (M) the fol-
lowing new subparagraphs: 
‘‘(N) enhanced ability for small business 
concerns to reduce costs by using energy effi-
cient products and generating renewable en-
ergy, 
‘‘(O) aid revitalizing of any area for which 
a disaster has been declared or determined 
under subparagraph (A), (B), (C), or (E) of 
section 7(b)(2) of the Small Business Act, or 
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‘‘(P) expansion of small business concerns 
with 10 or fewer employees.’’; and 
(7) in the flush text following subparagraph 
(P), as added by paragraph (6), by striking ‘‘sub-
paragraphs (J) and (K)’’ and inserting ‘‘subpara-
graphs (K) and (L)’’. 
SEC. 3. INCREASE IN LOAN AMOUNTS FOR MANUFAC-
TURING LOANS. 
Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘The Administration’’ and inserting the fol-
lowing: 
‘‘(a) IN GENERAL.—The Administration’’; and 
(2) in subsection (a), as so designated— 
(A) in paragraph (2)(A)— 
(i) in the matter preceding clause (i), 
by striking ‘‘section’’ and inserting ‘‘sub-
section’’; and 
(ii) 
in 
clause 
(iii), 
by 
striking 
‘‘$5,500,000’’ and inserting ‘‘$6,500,000’’; 
and 
(B) in paragraph (3)(A), by striking ‘‘this 
section’’ and inserting ‘‘this subsection’’. 
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SEC. 4. IMPROVEMENTS TO 504 LOAN CLOSING PROCE-
DURE. 
Title V of the Small Business Investment Act of 1958 
(15 U.S.C. 695 et seq.) is amended— 
(1) in section 502, as amended by section 3, by 
adding at the end the following new subsections: 
‘‘(b) CLOSING.— 
‘‘(1) AUTHORITY
OF
CERTAIN
DEVELOPMENT 
COMPANIES.—An accredited lender certified com-
pany may take any of the following actions to facili-
tate the closing of a loan made under subsection (a): 
‘‘(A) Reallocate the cost of the project with 
respect to which the loan is made in an amount 
that is not more than 10 percent of the overall 
cost of the project. 
‘‘(B) Correct any name that is applicable 
to the loan, including the name of any bor-
rower, guarantor, eligible passive company de-
scribed in subparagraph (C)(i), and operating 
company described in subparagraph (C)(ii). 
‘‘(C) Form any of the following to receive 
proceeds of the loan: 
‘‘(i) An eligible passive company that 
complies with section 120.111 of title 13, 
Code of Federal Regulations, or any suc-
cessor regulation. 
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‘‘(ii) If an eligible passive company is 
formed under clause (i), an operating com-
pany with respect to that eligible passive 
company. 
‘‘(D) Correct the address of any property 
with respect to which the loan is made. 
‘‘(E) Correct the name of any interim 
lender or third-party lender. 
‘‘(F) Change any third-party lender or in-
terim lender if that lender is a financial institu-
tion that is regulated by the Federal Govern-
ment or a State government. 
‘‘(G) Make a guarantor a co-borrower or a 
co-borrower a guarantor. 
‘‘(H) Add a guarantor that does not 
change ownership with respect to the loan. 
‘‘(I) Reduce the amount of standby debt 
before the closing as a result of regularly sched-
uled payments. 
‘‘(J) Reduce the cost of the project with 
respect to which the loan is made. 
‘‘(2) FEES.—The Administrator shall— 
‘‘(A) issue a rule regarding the amount of 
a closing fee that may be financed in a deben-
ture that is issued by a certified development 
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company to make one or more loans to small 
business concerns, the proceeds of which are 
used by that concern for the purposes described 
in subsection (a), except that such amount shall 
be not less than $3,500; and 
‘‘(B) periodically update the rule issued 
under subparagraph (A). 
‘‘(3) NO
ADVERSE
CHANGE
AND
FINANCIAL 
STATEMENT.—Before the closing with respect to a 
loan made under subsection (a), the borrower and 
any operating company shall— 
‘‘(A) make the certification required under 
section 120.892 of title 13, Code of Federal 
Regulations, or any successor regulation; and 
‘‘(B) submit to the certified development 
company a financial statement that is not more 
than 180 days old, which the company shall 
certify not later than 120 days before the date 
on which the certified development company 
issues a debenture with respect to the project to 
which the loan relates. 
‘‘(c) ACCREDITED LENDER CERTIFIED COMPANY 
DEFINED.—In this section, the term ‘accredited lender 
certified company’ means a certified development company 
that meets the requirements under section 507(b), includ-
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ing a certified development company that the Administra-
tion has designated as an accredited lender under such 
section 507(b).’’; and 
(2) by adding at the end the following new sec-
tion: 
‘‘SEC. 511. CLOSING AND OVERSIGHT. 
‘‘(a) SBA DISTRICT COUNSELS.—Beginning on the 
date of enactment of this section, with respect to the pro-
gram established under this title, district counsels of the 
Administration shall be subject to the same requirements, 
and shall have the same authority and responsibilities, as 
in effect with respect to that program on the day before 
the date of enactment of this section, except that— 
‘‘(1) the Office of Credit Risk Management of 
the Administration shall have the responsibility for 
all duties relating to conducting file reviews of loans 
made under this title; and 
‘‘(2) district counsels of the Administration 
shall not have any responsibility relating to the re-
view of closing packages with respect to a loan made 
under this title. 
‘‘(b) DESIGNATED ATTORNEYS.—For the purposes of 
this title, the following provisions and requirements shall 
apply with respect to a designated attorney of a certified 
development company: 
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