SENATE 1352 (118th Congress) — 504 Modernization and Small Manufacturer Enhancement Act of 2023

Actions

2023-07-25Placed on Senate Legislative Calendar under General Orders. Calendar No. 168.
2023-07-25Committee on Small Business and Entrepreneurship. Reported by Senator Cardin with an amendment in the nature of a substitute. Without written report.
2023-07-25Committee on Small Business and Entrepreneurship. Reported by Senator Cardin with an amendment in the nature of a substitute. Without written report.
2023-07-19Committee on Small Business and Entrepreneurship. Ordered to be reported with an amendment in the nature of a substitute favorably.
2023-04-27Read twice and referred to the Committee on Small Business and Entrepreneurship.
2023-04-27Introduced in Senate

CRS Summary

As of 2023-07-25 (25)

504 Modernization and Small Manufacturer Enhancement Act of 2023

This bill modifies the Small Business Administration (SBA) 504 Loan Program, which provides a small business with SBA financing—through a certified development company (CDC) intermediary—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.

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.

Cosponsors (4)

Todd Young (R-IN)
Cory Booker (D-NJ)
Marco Rubio (R-FL)
Maria Cantwell (D-WA)

Subjects

Administrative law and regulatory procedures
Banking and financial institutions regulation
Business records
Environmental assessment, monitoring, research
Financial services and investments
Small Business Administration
Small business
User charges and fees