504 Bills Pass House: What This Means for Small Businesses:
Our national association, NADCO, recently passed along important news: on January 20, the U.S. House of Representatives approved five small business bills, including two that could positively impact the SBA 504 Loan Program. We’re sharing this update so our lending partners have the latest information before these bills move to the Senate.
Main Street Parity Act:
The first bill, the Main Street Parity Act (H.R. 5763), would remove the additional 5% equity injection currently required for special-purpose properties. This requirement has been a barrier for many otherwise strong projects, and its removal could improve access to 504 financing for small businesses. Please click here for more information regarding this bill.
504 Program Risk Oversight Act:
The second bill, the 504 Program Risk Oversight Act (H.R. 5788), would require SBA to submit an annual portfolio risk analysis report to Congress. This added transparency helps demonstrate the strength of the 504 portfolio and supports the program’s long-term stability and availability. Requiring SBA to formally document and report that performance helps reinforce what CDCs and lenders already know: the program is well-managed and low-risk. When lawmakers have hard data in front of them, it strengthens confidence in the program. You can read the full text of the bill here.
These bills reflect ongoing efforts to reduce unnecessary obstacles and ensure lawmakers have clear data demonstrating the 504 program’s health and effectiveness.
GLCF is Here to Help:
At Great Lakes Commercial Finance, we stay closely connected to NADCO, the national trade association representing Certified Development Companies and the SBA 504 Loan Program in Washington, D.C., so we can monitor advocacy efforts and keep our lenders informed on developments that could impact their lending activity. We will continue to track these bills as they move through the Senate and share updates as they become available.
GLCF is here to answer your questions and help you navigate this period.
Please don’t hesitate to call us at (616) 459-4825. Please stay tuned for updates. We will continue to share information as it becomes available.
OR:
Reach out to one of our Loan Officers!
