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Bill116th CongressFiled Sep 11, 2020Commerce
H.R. 8211

504 Modernization and Small Manufacturer Enhancement Act of 2020

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary passed house (Dec 3, 2020)

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—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, 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.

What just happenedDec 7, 2020

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Who’s behind it

Rep. Craig, Angie [D-MN-2](D-MN)Sponsor
3 cosponsors1 D2 R
Read on Congress.gov
3cosponsors2committees12actions16subjects
  1. Dec 7, 2020IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

    Small Business and Entrepreneurship Committee
  2. Dec 3, 2020FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. Dec 3, 2020FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H6072-6075)

  4. Dec 3, 2020Floor8000

    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)

  5. Dec 3, 2020FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 8211.

  6. Dec 3, 2020FloorH30000

    Considered under suspension of the rules. (consideration: CR H6072-6076)

  7. Dec 3, 2020FloorH30300

    Ms. Velazquez moved to suspend the rules and pass the bill, as amended.

  8. Sep 16, 2020Committee

    Ordered to be Reported (Amended) by Voice Vote.

    Small Business Committee
  9. Sep 16, 2020Committee

    Committee Consideration and Mark-up Session Held.

    Small Business Committee
  10. Sep 11, 2020IntroReferralH11100

    Referred to the House Committee on Small Business.

    Small Business Committee
  11. Sep 11, 2020IntroReferralIntro-H

    Introduced in House

  12. Sep 11, 2020IntroReferral1000

    Introduced in House

Passed HouseDec 3, 202053

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—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, 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.

Introduced in HouseSep 11, 2020

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—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, 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.

504 Modernization and Small Manufacturer Enhancement Act of 2020 — Informed