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) EXPRESS PROGRAM.—An accredited lender cer-
tified company may, with respect to a covered loan, take 
any of the following actions with respect to the loan: 
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‘‘(1) Any action described in any of subpara-
graphs (A) through (J) of subsection (b)(1). 
‘‘(2) If the borrower is not delinquent with re-
spect to the loan payments— 
‘‘(A) permit the loan to subordinate to a 
new third-party lender loan for the purposes of 
refinancing that third-party lender loan, except 
that no refinanced amount with respect to the 
loan may be increased in order to provide cash 
to the borrower; 
‘‘(B) permit a new party to assume respon-
sibility for the loan if the original borrower re-
mains on the loan as the original guarantor; 
‘‘(C) obtain force placed insurance cov-
erage for the loan if the borrower has allowed 
insurance coverage with respect to the loan to 
lapse; and 
‘‘(D) endorse an insurance check with re-
spect to the property that is financed by the 
loan in an amount that is less than $100,000. 
‘‘(3) Certify that the loan is compliant with the 
appraisal requirements and environmental policies 
and procedures applicable to the loan under Stand-
ard Operating Procedure 50 10 6 of the Administra-
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tion, effective August 28, 2020, or any successor 
Standard Operating Procedure. 
‘‘(d) DEFINITIONS.—In this section— 
‘‘(1) the term ‘accredited lender certified com-
pany’ means a certified development company that 
meets the requirements under section 507(b), includ-
ing a certified development company that the Ad-
ministration has designated as an accredited lender 
under such section 507(b); and 
‘‘(2) the term ‘covered loan’— 
‘‘(A) means a loan made under subsection 
(a) in an amount that is not more than 
$500,000; and 
‘‘(B) does not include a loan made to a 
borrower that is a franchise that, or is in an in-
dustry that, has a high rate of default, as annu-
ally determined by the Administrator.’’; 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 
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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: 
‘‘(1) A designated attorney that meets the re-
quirements determined under paragraph (2) shall be 
responsible for certifying documents relating to the 
closing of a loan described in this title. 
‘‘(2) The Administrator may determine any 
continuing education requirements that the des-
ignated attorney shall be required to satisfy in order 
to be permitted to close a loan made under this title. 
‘‘(3) If, as of the date of enactment of this sec-
tion, a certified development company does not have 
a designated attorney, during the 270-day period be-
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ginning on that date of enactment, the certified de-
velopment company may identify such an attorney, 
subject to the approval of the Administrator.’’. 
SEC. 5. CERTIFIED DEVELOPMENT COMPANY LOANS FOR 
SMALL MANUFACTURERS. 
(a) 
CONTRIBUTION
REQUIREMENT.—Section 
502(a)(3)(C) of the Small Business Investment Act of 
1958, as designated by section 3, is amended— 
(1) by redesignating clauses (i), (ii), (iii), and 
(iv) as subclauses (I), (II), (III), and (IV), respec-
tively, and adjusting the margins of such subclauses 
accordingly; 
(2) by inserting before subclause (I), as so re-
designated, the following: 
‘‘(i) for a small business concern that 
is not a small manufacturer (as defined in 
section 501(e)(7))—’’; 
(3) in subclause (III), as so redesignated, by 
striking ‘‘clauses (i) and (ii)’’ and inserting ‘‘sub-
clauses (I) and (II)’’; 
(4) in subclause (IV) as so redesignated, by 
striking the period and the end and inserting ‘‘; or’’; 
and 
(5) by adding at the end the following: 
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‘‘(ii) for a small manufacturer (as de-
fined in section 501(e)(7))— 
‘‘(I) at least 5 percent of the 
total cost of the project financed, if 
the small business concern has been in 
operation for a period of 2 years or 
less; 
‘‘(II) at least 5 percent of the 
total cost of the project financed, if 
the project involves a limited or single 
purpose building or structure; 
‘‘(III) at least 10 percent of the 
total cost of the project financed if the 
project involves both of the conditions 
set forth in subclauses (I) and (II); or 
‘‘(IV) at least 5 percent of the 
total cost of the project financed, in 
all other circumstances, at the discre-
tion of the development company.’’. 
(b) CREATION OR RETENTION OF JOBS REQUIRE-
MENT.—Section 501(e) of the Small Business Investment 
Act of 1958 (15 U.S.C. 695(e)) is amended— 
(1) in paragraph (1), by striking ‘‘creates or re-
tains’’ and all that follows through the period at the 
end and inserting ‘‘creates or retains 1 job for every 
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$75,000 guaranteed by the Administration, except 
that the amount is $150,000 in the case of a project 
of a small manufacturer.’’; 
(2) in paragraph (2), by striking ‘‘creates or re-
tains’’ and all that follows through the period at the 
end and inserting ‘‘creates or retains 1 job for every 
$75,000 guaranteed by the Administration, except 
that the amount is $150,000 in the case of a project 
of a small manufacturer.’’; 
(3) by redesignating paragraph (6) as para-
graph (7); and 
(4) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) For a loan for a project directed toward the cre-
ation of job opportunities under subsection (d)(1), the Ad-
ministrator shall publish on the website of the Administra-
tion the number of jobs created or retained under the 
project as of the date that is 2 years after the completion 
(as determined based on information provided by the de-
velopment company) of the project.’’. 
(c) 
COLLATERAL
REQUIREMENTS.—Section 
502(a)(3)(E)(i) of the Small Business Investment Act of 
1958, as designated by section 3, is amended by adding 
at the end the following: ‘‘Additional collateral shall not 
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be required in the case of a small manufacturer (as de-
fined in section 501(e)(7)).’’. 
(d) DEBT REFINANCING.—Section 502(a)(7)(B) of 
the Small Business Investment Act of 1958, as designated 
by section 3, is amended in the matter preceding clause 
(i) by inserting ‘‘(or in the case of a small manufacturer 
(as defined in section 501(e)(7)), that does not exceed 100 
percent of the project cost of the expansion)’’ after ‘‘cost 
of the expansion’’. 
(e) AMOUNT OF GUARANTEED DEBENTURE.—Sec-
tion 503(a) of the Small Business Investment Act of 1958 
(15 U.S.C. 697(a)) is amended by adding at the end the 
following: 
‘‘(5) Any debenture issued by a State or local devel-
opment company to a small manufacturer (as defined in 
section 501(e)(7)) with respect to which a guarantee is 
made under this subsection shall be in an amount equal 
to not more than 50 percent of the cost of the project 
with respect to which such debenture is issued, without 
regard to whether good cause has been shown.’’. 
SEC. 6. ASSISTANCE FOR SMALL MANUFACTURERS. 
Title V of the Small Business Investment Act of 1958 
(15 U.S.C. 695 et seq.), as amended by section 4(2), is 
further amended by adding at the end the following new 
section: 
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‘‘SEC. 512. ASSISTANCE FOR SMALL MANUFACTURERS. 
‘‘(a) IN GENERAL.—The Administrator shall ensure 
that each district office of the Administration partners 
with not less than 1 resource partner to provide training 
to small business concerns assigned a North American In-
dustry Classification System code for manufacturing on 
obtaining assistance under the program carried out under 
this title, including with respect to the application process 
under that program and partnering with development 
companies under this title. 
‘‘(b) RESOURCE PARTNER DEFINED.—In this sec-
tion, the term ‘resource partner’ means— 
‘‘(1) a small business development center (as 
defined in section 3 of the Small Business Act); 
‘‘(2) a women’s business center (described 
under section 29 of such Act); 
‘‘(3) a chapter of the Service Corps of Retired 
Executives (established under section 8(b)(1)(B) of 
such Act); and 
‘‘(4) a Veteran Business Outreach Center (de-
scribed under section 32 of such Act).’’. 
Æ 
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