Senate Bill Would Increase 504 Loan Limits, Ease Job Requirements

The Senate Small Business Committee last week approved a bill (S.1375) that increases the CDC funding limit for 504 loans to $1.5 million and also changes the job creation ratio from one per $35,000 to one per $50,000.

The bill, which reauthorizes the 504 program for the next three years, includes a number of other significant provisions:

• SBA will develop simplified loan applications for all 504 loans.

• A pilot program will provide 504 financing to non-profit childcare businesses.

• A special small manufacturer’s loan of up to $4 million will be created. Such a loan would have a job creation requirement of one job per $100,000 loaned.

The bill must still pass the full Senate, and the House has yet to pass its version of the bill. However, it’s possible these changes could be voted into law within the next few months. Link to Senate bill archive.