H.R. 10352: 504 Program Level Flexibility Act

This bill would change how the Small Business Administration’s 504 loan program works starting in fiscal year 2027.

What the 504 program is

The 504 program helps small businesses finance major purchases such as real estate, buildings, equipment, and other fixed assets. It does this by supporting loans made through certified development companies, which are state or local nonprofit lenders that work with the SBA.

What the bill would change

The bill would give the SBA Administrator limited extra flexibility if the agency is close to reaching its annual cap on how much it can commit to guarantee these loans. If the Administrator decides the annual limit may be exceeded, the Administrator could authorize commitments up to 115% of the normal limit for that year.

In plain terms, this means the SBA could approve somewhat more 504 loan support than normally allowed if demand is high.

Limits on using this authority

• The extra authority would apply only for fiscal year 2027 and later.
• The SBA would have to give 30 days’ notice before using the authority.
• That notice would have to be sent to the relevant House and Senate committees.
• The Administrator could use this authority only once per fiscal year.

Overall effect

The bill would not create a new loan program or change who qualifies for 504 loans. Instead, it would let the SBA make a limited increase in commitments when the program is at risk of hitting its annual ceiling, which could allow more small businesses to get access to 504 financing in a given year.

Relevant Companies

None found