504 Modernization and Small Manufacturer Enhancement Act of 2020

Bill: 116-hr-8211
Sponsor: Rep. Craig, Angie [D-MN-2]
Introduced: 2020-09-11 in the House
Policy area: Commerce
Subjects: Administrative remedies
Bank accounts, deposits, capital
Business records
Debt collection
Economic development
Employment and training programs
Energy efficiency and conservation
Financial services and investments
Government lending and loan guarantees
Manufacturing
Minority and disadvantaged businesses
Performance measurement
Small Business Administration
Small business
User charges and fees
Vocational and technical education

Summary:
action_date: 2020-09-11
text: 

504 Modernization and Small Manufacturer Enhancement Act of 2020

 
This bill modifies the Small Business Administration (SBA) 504 Loan Program, which provides a small business with SBA financing&#8212;through a certified development company (CDC) intermediary&#8212;for expansion or modernization.
 
Specifically, the bill adds policy goals, at least one of which a CDC must demonstrate to be eligible for assistance. These include (1) enhancing the ability of a small business to reduce costs by using energy efficient products and generating renewable energy, and (2) aiding the revitalization of any area for which a disaster has been declared or determined. The bill also authorizes a CDC to take specified actions to facilitate the closing of a 504 loan, such as correcting borrower or lender information on loan documents or reallocating up to 10% of the cost of a project, and it establishes an express loan closing program for a 504 loan that is less than $500,000.
 
For small manufacturers, the bill (1) increases the maximum loan amount from $5.5 million to $6.5 million, (2) reduces the amount that they must contribute to project costs, (3) increases job retention requirements, and (4) revises collateral requirements and debt refinancing considerations. Further, each SBA district office must partner with a resource partner to provide certain training for small manufacturers. 

action_date: 2020-12-03
text: 

504 Modernization and Small Manufacturer Enhancement Act of 2020

 
This bill modifies the Small Business Administration (SBA) 504 Loan Program, which provides a small business with SBA financing&#8212;through a certified development company (CDC) intermediary&#8212;for expansion or modernization.
 
Specifically, the bill adds policy goals, at least one of which a CDC must demonstrate to be eligible for assistance. These include (1) enhancing the ability of a small business to reduce costs by using energy efficient products and generating renewable energy, and (2) aiding the revitalization of any area for which a disaster has been declared or determined. The bill also authorizes a CDC to take specified actions to facilitate the closing of a 504 loan, such as correcting borrower or lender information on loan documents or reallocating up to 10% of the cost of a project, and it establishes an express loan closing program for a 504 loan that is less than $500,000.
 
Further, the bill authorizes a CDC to refinance up to 100% of costs for expansion projects, and it establishes specified requirements for refinancing projects that do not involve expansion. The bill also modifies the requirements for projects to construct a new facility or to acquire, renoavate, or reconstruct an existing building.
 
For small manufacturers, the bill (1) increases the maximum loan amount from $5.5 million to $6.5 million, (2) reduces the amount that they must contribute to project costs, (3) increases job retention requirements, and (4) revises collateral requirements. Further, each SBA district office must partner with a resource partner to provide certain training for small manufacturers.


Legislative actions:
action_date: 2020-12-07
text: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
action_date: 2020-12-03
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2020-12-03
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H6072-6075)
action_date: 2020-12-03
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H6072-6075)
action_date: 2020-12-03
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 8211.
action_date: 2020-12-03
text: Considered under suspension of the rules. (consideration: CR H6072-6076)
action_date: 2020-12-03
text: Ms. Velazquez moved to suspend the rules and pass the bill, as amended.
action_date: 2020-09-16
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2020-09-16
text: Committee Consideration and Mark-up Session Held.
action_date: 2020-09-11
text: Referred to the House Committee on Small Business.
action_date: 2020-09-11
text: Introduced in House
action_date: 2020-09-11
text: Introduced in House