Young proposes two bipartisan bills to improve 504 small business loan program
Two bipartisan bills recently proposed by U.S. Senator Todd Young (R-IN) would improve the Small Business Administration (SBA) 504 loan guarantee program, which provides small businesses with long-term, fixed-rate financing for main fixed assets such as land equipment. and machines.
“Small businesses are the backbone of our economy, creating about two-thirds of new American jobs and generating nearly half of American economic activity,” said Senator Young. “In Indiana, the SBA’s 504 loan program has funded more than $ 1.8 billion in expansion and saved or created tens of thousands of jobs at Hoosier.
On June 24, Senator Young sponsored the 2021 Credit Risk Management Improvement Act 504, S. 2245, with the original principal cosponsor, U.S. Senator Amy Klobuchar (D-MN), who order the SBA’s credit risk management office to oversee certified development. Companies (CDC) participating in the 504 program, according to a summary of the bill provided by Senator Young’s office.
Additionally, Section 2245 would require the office to review a random selection of loan closings to ensure program integrity, consolidate findings into a report and send the report to relevant parties and allow the office to take action to informal and formal enforcement against CDCs. if he finds that they have violated the requirements of the 504 program, according to the summary.
Also on June 24, Senator Young signed as the initial lead cosponsor of the Small Manufacturers Modernization and Improvement Act 504 of 2021, S. 2231, with the bill’s sponsor, Senator Klobuchar, to improve the SBA’s 504 loan guarantee program and build the capacity of small manufacturers to access affordable capital, the bill says.
Specifically, section 2231 would increase the maximum loan amount for small manufacturers from $ 5.5 million to $ 6.5 million; reduce project costs for small manufacturers and adjust job creation and retention requirements; and streamline many of the administrative processes associated with the 504 loan closing process by allowing accredited CDCs to perform closing-related tasks, according to Senator Young’s bill summary.
“I am proud to support this legislation, which will help small businesses grow or initiate new projects to develop the local economy in Hoosier,” said Senator Young.