[Congressional Record Volume 166, Number 204 (Thursday, December 3, 2020)]
[House]
[Pages H6072-H6076]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
504 MODERNIZATION AND SMALL MANUFACTURER ENHANCEMENT ACT OF 2020
Ms. VELAZQUEZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 8211) to amend the Small Business Investment Act of 1958 to
improve the loan guaranty program, enhance the ability of small
manufacturers to access affordable capital, and for other purposes, as
amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 8211
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``504 Modernization and Small
Manufacturer Enhancement Act of 2020''.
SEC. 2. ADDITIONS TO POLICY GOALS FOR THE DEVELOPMENT COMPANY
PROGRAM.
Section 501(d)(3) of the Small Business Investment Act of
1958 (15 U.S.C. 695(d)(3)) is amended--
(1) by redesignating subparagraphs (A) through (L) as
subparagraphs (B) through (M), respectively;
(2) by inserting before subparagraph (B) (as so
redesignated) the following:
``(A) workforce development through work-based or work-
integrated training, which shall be satisfied by
demonstrating that a small business concern that is a subject
of the project has--
``(i) a documented in-house training program, the duration
of which is not shorter than 12 weeks; or
``(ii) entered into a contract with an entity--
``(I) to provide trained applicants for any open position
of employment at the small business concern; and
``(II) that ensures that any applicant provided to the
small business concern under subclause (I) has undergone not
fewer than 12 weeks of training that is relevant to the open
position described in that subclause,'';
(3) by amending subparagraph (D) (as so redesignated) to
read as follows:
``(D) expansion of minority-owned, employee-owned, or
women-owned business development,'';
[[Page H6073]]
(4) in subparagraph (L) (as so redesignated), by striking
``producers, or'' and inserting ``producers,'';
(5) in subparagraph (M) (as so redesignated), by striking
the period at the end and inserting a comma;
(6) by inserting after subparagraph (M) the following new
subparagraphs:
``(N) enhanced ability for small business concerns to
reduce costs by using energy efficient products and
generating renewable energy,
``(O) aid revitalizing of any area for which a disaster has
been declared or determined under subparagraph (A), (B), (C),
or (E) of section 7(b)(2) of the Small Business Act, or
``(P) expansion of small business concerns with 10 or fewer
employees.''; and
(7) in the flush text following subparagraph (P), as added
by paragraph (6), by striking ``subparagraphs (J) and (K)''
and inserting ``subparagraphs (K) and (L)''.
SEC. 3. INCREASE IN LOAN AMOUNTS FOR MANUFACTURING LOANS.
Section 502 of the Small Business Investment Act of 1958
(15 U.S.C. 696) is amended--
(1) in the matter preceding paragraph (1), by striking
``The Administration'' and inserting the following:
``(a) In General.--The Administration''; and
(2) in subsection (a), as so designated--
(A) in paragraph (2)(A)--
(i) in the matter preceding clause (i), by striking
``section'' and inserting ``subsection''; and
(ii) in clause (iii), by striking ``$5,500,000'' and
inserting ``$6,500,000''; and
(B) in paragraph (3)(A), by striking ``this section'' and
inserting ``this subsection''.
SEC. 4. IMPROVEMENTS TO 504 LOAN CLOSING PROCEDURE.
Title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.) is amended--
(1) in section 502, as amended by section 3, by adding at
the end the following new subsections:
``(b) Closing.--
``(1) Authority of certain development companies.--An
accredited lender certified company may take any of the
following actions to facilitate the closing of a loan made
under subsection (a):
``(A) Reallocate the cost of the project with respect to
which the loan is made in an amount that is not more than 10
percent of the overall cost of the project.
``(B) Correct any name that is applicable to the loan,
including the name of any borrower, guarantor, eligible
passive company described in subparagraph (C)(i), and
operating company described in subparagraph (C)(ii).
``(C) Form any of the following to receive proceeds of the
loan:
``(i) An eligible passive company that complies with
section 120.111 of title 13, Code of Federal Regulations, or
any successor regulation.
``(ii) If an eligible passive company is formed under
clause (i), an operating company with respect to that
eligible passive company.
``(D) Correct the address of any property with respect to
which the loan is made.
``(E) Correct the name of any interim lender or third-party
lender.
``(F) Change any third-party lender or interim lender if
that lender is a financial institution that is regulated by
the Federal Government or a State government.
``(G) Make a guarantor a co-borrower or a co-borrower a
guarantor.
``(H) Add a guarantor that does not change ownership with
respect to the loan.
``(I) Reduce the amount of standby debt before the closing
as a result of regularly scheduled payments.
``(J) Reduce the cost of the project with respect to which
the loan is made.
``(2) Fees.--The Administrator shall--
``(A) issue a rule regarding the amount of a closing fee
that may be financed in a debenture that is issued by a
certified development company to make one or more loans to
small business concerns, the proceeds of which are used by
that concern for the purposes described in subsection (a),
except that such amount shall be not less than $3,500; and
``(B) periodically update the rule issued under
subparagraph (A).
``(3) No adverse change and financial statement.--Before
the closing with respect to a loan made under subsection (a),
the borrower and any operating company shall--
``(A) make the certification required under section 120.892
of title 13, Code of Federal Regulations, or any successor
regulation; and
``(B) submit to the certified development company a
financial statement that is not more than 180 days old, which
the company shall certify not later than 120 days before the
date on which the certified development company issues a
debenture with respect to the project to which the loan
relates.
``(c) Express Program.--An accredited lender certified
company may, with respect to a covered loan, take any of the
following actions with respect to the loan:
``(1) Any action described in any of subparagraphs (A)
through (J) of subsection (b)(1).
``(2) If the borrower is not delinquent with respect to the
loan payments--
``(A) permit the loan to subordinate to a new third-party
lender loan for the purposes of refinancing that third-party
lender loan, except that no refinanced amount with respect to
the loan may be increased in order to provide cash to the
borrower;
``(B) permit a new party to assume responsibility for the
loan if the original borrower remains on the loan as the
original guarantor;
``(C) obtain force placed insurance coverage for the loan
if the borrower has allowed insurance coverage with respect
to the loan to lapse; and
``(D) endorse an insurance check with respect to the
property that is financed by the loan in an amount that is
less than $100,000.
``(3) Certify that the loan is compliant with the appraisal
requirements and environmental policies and procedures
applicable to the loan under Standard Operating Procedure 50
10 6 of the Administration, effective August 28, 2020, or any
successor Standard Operating Procedure.
``(d) Definitions.--In this section--
``(1) the term `accredited lender certified company' means
a certified development company that meets the requirements
under section 507(b), including a certified development
company that the Administration has designated as an
accredited lender under such section 507(b); and
``(2) the term `covered loan'--
``(A) means a loan made under subsection (a) in an amount
that is not more than $500,000; and
``(B) does not include a loan made to a borrower that is a
franchise that, or is in an industry that, has a high rate of
default, as annually determined by the Administrator.''; and
(2) by adding at the end the following new section:
``SEC. 511. CLOSING AND OVERSIGHT.
``(a) SBA District Counsels.--Beginning on the date of
enactment of this section, with respect to the program
established under this title, district counsels of the
Administration shall be subject to the same requirements, and
shall have the same authority and responsibilities, as in
effect with respect to that program on the day before the
date of enactment of this section, except that--
``(1) the Office of Credit Risk Management of the
Administration shall have the responsibility for all duties
relating to conducting file reviews of loans made under this
title; and
``(2) district counsels of the Administration shall not
have any responsibility relating to the review of closing
packages with respect to a loan made under this title.
``(b) Designated Attorneys.--For the purposes of this
title, the following provisions and requirements shall apply
with respect to a designated attorney of a certified
development company:
``(1) A designated attorney that meets the requirements
determined under paragraph (2) shall be responsible for
certifying documents relating to the closing of a loan
described in this title.
``(2) The Administrator may determine any continuing
education requirements that the designated attorney shall be
required to satisfy in order to be permitted to close a loan
made under this title.
``(3) If, as of the date of enactment of this section, a
certified development company does not have a designated
attorney, during the 270-day period beginning on that date of
enactment, the certified development company may identify
such an attorney, subject to the approval of the
Administrator.''.
SEC. 5. CERTIFIED DEVELOPMENT COMPANY LOANS FOR SMALL
MANUFACTURERS.
(a) Contribution Requirement.--Section 502(a)(3)(C) of the
Small Business Investment Act of 1958, as designated by
section 3, is amended--
(1) by redesignating clauses (i), (ii), (iii), and (iv) as
subclauses (I), (II), (III), and (IV), respectively, and
adjusting the margins of such subclauses accordingly;
(2) by inserting before subclause (I), as so redesignated,
the following:
``(i) for a small business concern that is not a small
manufacturer (as defined in section 501(e)(7))--'';
(3) in subclause (III), as so redesignated, by striking
``clauses (i) and (ii)'' and inserting ``subclauses (I) and
(II)'';
(4) in subclause (IV) as so redesignated, by striking the
period and the end and inserting ``; or''; and
(5) by adding at the end the following:
``(ii) for a small manufacturer (as defined in section
501(e)(7))--
``(I) at least 5 percent of the total cost of the project
financed, if the small business concern has been in operation
for a period of 2 years or less;
``(II) at least 5 percent of the total cost of the project
financed, if the project involves a limited or single purpose
building or structure;
``(III) at least 10 percent of the total cost of the
project financed if the project involves both of the
conditions set forth in subclauses (I) and (II); or
``(IV) at least 5 percent of the total cost of the project
financed, in all other circumstances, at the discretion of
the development company.''.
(b) Creation or Retention of Jobs Requirement.--Section
501(e) of the Small Business Investment Act of 1958 (15
U.S.C. 695(e)) is amended--
(1) in paragraph (1), by striking ``creates or retains''
and all that follows through the period at the end and
inserting ``creates or retains 1 job for every $75,000
guaranteed by
[[Page H6074]]
the Administration, except that the amount is $150,000 in the
case of a project of a small manufacturer.'';
(2) in paragraph (2), by striking ``creates or retains''
and all that follows through the period at the end and
inserting ``creates or retains 1 job for every $75,000
guaranteed by the Administration, except that the amount is
$150,000 in the case of a project of a small manufacturer.'';
(3) by redesignating paragraph (6) as paragraph (7); and
(4) by inserting after paragraph (5) the following:
``(6) For a loan for a project directed toward the creation
of job opportunities under subsection (d)(1), the
Administrator shall publish on the website of the
Administration the number of jobs created or retained under
the project as of the date that is 2 years after the
completion (as determined based on information provided by
the development company) of the project.''.
(c) Collateral Requirements.--Section 502(a)(3)(E)(i) of
the Small Business Investment Act of 1958, as designated by
section 3, is amended by adding at the end the following:
``Additional collateral shall not be required in the case of
a small manufacturer (as defined in section 501(e)(7)).''.
(d) Debt Refinancing.--Section 502(a)(7)(B) of the Small
Business Investment Act of 1958, as designated by section 3,
is amended in the matter preceding clause (i) by inserting
``(or in the case of a small manufacturer (as defined in
section 501(e)(7)), that does not exceed 100 percent of the
project cost of the expansion)'' after ``cost of the
expansion''.
(e) Amount of Guaranteed Debenture.--Section 503(a) of the
Small Business Investment Act of 1958 (15 U.S.C. 697(a)) is
amended by adding at the end the following:
``(5) Any debenture issued by a State or local development
company to a small manufacturer (as defined in section
501(e)(7)) with respect to which a guarantee is made under
this subsection shall be in an amount equal to not more than
50 percent of the cost of the project with respect to which
such debenture is issued, without regard to whether good
cause has been shown.''.
SEC. 6. ASSISTANCE FOR SMALL MANUFACTURERS.
Title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.), as amended by section 4(2), is further
amended by adding at the end the following new section:
``SEC. 512. ASSISTANCE FOR SMALL MANUFACTURERS.
``(a) In General.--The Administrator shall ensure that each
district office of the Administration partners with not less
than 1 resource partner to provide training to small business
concerns assigned a North American Industry Classification
System code for manufacturing on obtaining assistance under
the program carried out under this title, including with
respect to the application process under that program and
partnering with development companies under this title.
``(b) Resource Partner Defined.--In this section, the term
`resource partner' means--
``(1) a small business development center (as defined in
section 3 of the Small Business Act);
``(2) a women's business center (described under section 29
of such Act);
``(3) a chapter of the Service Corps of Retired Executives
(established under section 8(b)(1)(B) of such Act); and
``(4) a Veteran Business Outreach Center (described under
section 32 of such Act).''.
SEC. 7. LEASING RULES FOR NEW FACILITIES AND EXISTING
BUILDINGS.
(a) In General.--Section 502(a) of the Small Business
Investment Act of 1958, as designated by section 3, is
amended by striking paragraphs (4) and (5) and inserting the
following new paragraphs:
``(4) New facilities.--
``(A) In general.--With respect to a project to construct a
new facility, an assisted small business concern may
permanently lease not more than 20 percent of the project if
such concern--
``(i) permanently occupies and uses not less than 60
percent of the project;
``(ii) plans to occupy and use an additional portion of the
project that is not permanently leased not later than 3 years
after receipt of assistance under this section; and
``(iii) plans to permanently occupy and use 80 percent of
the project not later than 10 years after receipt of such
assistance.
``(B) Small manufacturers.--With respect to an assisted
small business concern that is a small manufacturer (as
defined in section 501(e)(6)), subparagraph (A)(i) shall
apply with `50 percent' substituted for `60 percent'.
``(5) Existing buildings.--With respect to a project to
acquire, renovate, or reconstruct an existing building, the
following shall apply:
``(A) Occupancy requirements.--The assisted small business
concern may permanently lease not more than 50 percent of the
project if the concern permanently occupies and uses not less
than 50 percent of the project.
``(B) Exception.--The assisted small business concern may
permanently lease more than 50 percent of the project if--
``(i) such concern--
``(I) has occupied and used the existing building for a
consecutive 12-month period before submitting an application
for assistance under this section;
``(II) agrees to permanently use less than 50 percent of
the existing building and permanently lease more than 50
percent for a consecutive 12-month period after receiving
such assistance; and
``(III) affirms that the existing building is appropriate
for current and reasonably anticipated needs; and
``(ii) the development company assisting such project--
``(I) provides written notice to the Administrator on the
date on which the development company closes the loan for
such project; and
``(II) once each year during the first 5 years of the loan,
and once every 2 years for the remainder of the loan--
``(aa) conducts an examination of the assisted small
business concern to ensure the concern is not a real estate
development business; and
``(bb) files with the Administrator an anti-investor
certification signed by the development company and the
assisted small business concern.
``(C) Lease term.--Any residential lease made under this
paragraph shall be for a term of not more than 1 year, and
any commercial lease made under this paragraph shall be for a
term of not more than 5 years.''.
(b) Report.--Not later than 5 years after the date of the
enactment of this Act, the Administrator of the Small
Business Administration shall submit to Congress a report
analyzing the impact of the amendments made by this section
on access to capital for small business concerns (as defined
under section 3 of the Small Business Act (15 U.S.C. 632)),
and recommending whether similar notice, examination, and
certifications requirements should be made to the program
established under section 7(a) of the Small Business Act (15
U.S.C. 636(a)).
SEC. 8. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT
BUSINESS LOAN PROGRAM.
(a) Expansions.--Section 502(a)(7)(B) of the Small Business
Investment Act of 1958, as designated by section 3 and
amended by section 5(d), is further amended--
(1) in the matter preceding clause (i), by striking ``50
percent'' and inserting ``100 percent''; and
(2) in clause (v), by adding ``and'' at the end;
(3) by striking clause (vi); and
(4) by redesignating clause (vii) as clause (vi).
(b) Repeal.--Section 521(a) of division E of the
Consolidated Appropriations Act, 2016 (Public Law 114-113;
129 Stat. 2463; 15 U.S.C. 696 note) is repealed.
(c) Refinancing.--Section 502(a)(7) of the Small Business
Investment Act of 1958, as designated by section 3, is
amended by adding at the end the following new subparagraph:
``(C) Refinancing not involving expansions.--
``(i) Definitions.--In this subparagraph--
``(I) the term `borrower' means a small business concern
that submits an application to a development company for
financing under this subparagraph;
``(II) the term `eligible fixed asset' means tangible
property relating to which the Administrator may provide
financing under this section; and
``(III) the term `qualified debt' means indebtedness that--
``(aa) was incurred not less than 6 months before the date
of the application for assistance under this subparagraph;
``(bb) is a commercial loan;
``(cc) the proceeds of which were used to acquire an
eligible fixed asset;
``(dd) was incurred for the benefit of the small business
concern; and
``(ee) is collateralized by eligible fixed assets; and
``(ii) Authority.--A project that does not involve the
expansion of a small business concern may include the
refinancing of qualified debt if--
``(I) the amount of the financing is not more than 90
percent of the value of the collateral for the financing,
except that, if the appraised value of the eligible fixed
assets serving as collateral for the financing is less than
the amount equal to 125 percent of the amount of the
financing, the borrower may provide additional cash or other
collateral to eliminate any deficiency;
``(II) the borrower has been in operation for all of the 2-
year period ending on the date the loan application is
submitted; and
``(III) for a financing for which the Administrator
determines there will be an additional cost attributable to
the refinancing of the qualified debt, the borrower agrees to
pay a fee in an amount equal to the anticipated additional
cost.
``(iii) Financing for business expenses.--
``(I) Financing for business expenses.--The Administrator
may provide financing to a borrower that receives financing
that includes a refinancing of qualified debt under clause
(ii), in addition to the refinancing under clause (ii), to be
used solely for the payment of business expenses.
``(II) Application for financing.-- An application for
financing under subclause (I) shall include--
``(aa) a specific description of the expenses for which the
additional financing is requested; and
``(bb) an itemization of the amount of each expense.
``(III) Condition on additional financing.--A borrower may
not use any part of the
[[Page H6075]]
financing under this clause for non-business purposes.
``(iv) Loans based on jobs.--
``(I) Job creation and retention goals.--
``(aa) In general.--The Administrator may provide financing
under this subparagraph for a borrower that meets the job
creation goals under subsection (d) or (e) of section 501.
``(bb) Alternate job retention goal.--The Administrator may
provide financing under this subparagraph to a borrower that
does not meet the goals described in item (aa) in an amount
that is not more than the product obtained by multiplying the
number of employees of the borrower by $75,000.
``(II) Number of employees.--For purposes of subclause (I),
the number of employees of a borrower is equal to the sum
of--
``(aa) the number of full- time employees of the borrower
on the date on which the borrower applies for a loan under
this subparagraph; and
``(bb) the product obtained by multiplying--
``(AA) the number of part-time employees of the borrower on
the date on which the borrower applies for a loan under this
subparagraph; by
``(BB) the quotient obtained by dividing the average number
of hours each part time employee of the borrower works each
week by 40.
``(v) Nondelegation.--Notwithstanding section 508(e), the
Administrator may not permit a premier certified lender to
approve or disapprove an application for assistance under
this subparagraph.
``(vi) Total amount of loans.--The Administrator may
provide not more than a total of $7,500,000,000 of financing
under this subparagraph for each fiscal year.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each
will control 20 minutes.
The Chair recognizes the gentlewoman from New York.
General Leave
Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the measure under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from New York?
There was no objection.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of the bill before us today, H.R.
8211, the 504 Modernization and Small Manufacturer Enhancement Act of
2020, a bill that makes important improvements to the SBA's 504 Loan
Program.
Over 62 years ago, Congress created the 504 Loan Program at SBA to
help America's small businesses access affordable, long-term capital
needed to purchase land, real estate, heavy machinery, equipment, and
other fixed assets.
The program is a true public-private partnership. An SBA-backed
Certified Development Company provides 40 percent of the financing; a
bank or credit union provides 50 percent; and the small business
borrower provides 10 percent. This structure has proved to be extremely
successful for all parties involved.
However, earlier this Congress, our Investigations, Oversight and
Regulations Subcommittee heard from stakeholders who expressed concerns
with the loan closing process, specifically that delays have caused
loans to fall through and businesses to lose out on affordable
financing.
To that end, Ms. Craig and Mr. Chabot have put forth today's bill to
streamline the closing process and make compliance easier for CDCs,
borrowers, and third-party lenders alike. The bill also enhances access
to capital for small manufacturers by increasing the maximum 504. Loan
amount for small manufacturers from $5.5 million to $6.5 million. These
changes address the issues we have heard in our engagement with CDCs
and their borrowers in our districts.
Mr. Speaker, I thank Ms. Craig and Mr. Chabot for their hard work and
applaud them for their efforts to make bipartisan improvements to this
valuable program.
Mr. Speaker, I recommend a ``yes'' vote to all my colleagues in the
House, and I reserve the balance of my time.
{time} 1530
Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of H.R. 8211, the 504 Modernization and Small
Manufacturer Enhancement Act of 2020.
Fortunately, many of the SBA's government guaranteed loan programs
have a strong track record of producing results. Included near the top
of that list is the 504 loan program.
The SBA's 504/CDC Loan Program provides the Nation's smallest
businesses with long-term and fixed-rate financing.
Importantly, for a project to qualify for this government guarantee
loan program, certain economic development goals must be met, including
job creation and job retention goals.
H.R. 8211 modernizes that program by expanding the public policy
goals to include businesses with 10 employees or less, as well as
enhancing the program for small manufacturers.
I would like to thank the gentlewoman from Minnesota (Ms. Craig) for
working with me in a bipartisan fashion to craft this piece of
legislation.
I would also like to thank the chairwoman, Ms. Velazquez, once again
for advancing this legislation that was favorably reported out of
committee unanimously; so both Republicans and Democrats supporting it.
I urge my colleagues to support this, which provides crucial updates
to the SBA's program, and I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield such time as she may consume to
the gentlewoman from Minnesota (Ms. Craig), the sponsor of the bill.
Ms. CRAIG. Mr. Speaker, I rise today to urge my colleagues to support
H.R. 8211, the 504 Modernization and Small Manufacturing Enhancement
Act of 2020.
I would like to thank the ranking member for being an original
cosponsor of this bill; the chairwoman, for her leadership, and to her
staff for helping me and my constituents throughout the 116th Congress.
Our small businesses are suffering. Every day we see a new wave of
businesses closing their doors. Unemployment numbers are rising, and
our economy is suffering.
I hear from constituents daily that their businesses are on their
very last leg, and without action to support them, they will soon be
forced to close. These are not simply businesses. These are
livelihoods, family traditions, and priceless contributions to our
communities.
It is our job, as Members of Congress, to support these businesses,
ensure they survive these troubling times, and provide them with
multiple avenues to succeed.
In addition to relief, we need to pass legislation that provides
businesses in various industries opportunities for growth and access to
capital. One way we can do this is to build upon the Small Business
Administration's successful 504 loan program that promotes economic
development, job creation, and retention and expansion of small
businesses.
The 504 loan program is designed by local certified development
companies, or CDCs, delivered by those companies, which are private,
nonprofit corporations whose entire purpose is to promote economic
development within their communities.
The program backs long-term, fixed-rate loans to support investment
in major fixed assets through a three-part partnership with a local
lender.
One year ago, in the Subcommittee on Investigation, Oversight, and
Regulation hearing, CDC lenders spoke about their experiences with this
loan program and the many issues they navigated, we saw areas for
improvement.
One was the lengthy and complex loan closing process which caused
third-party lenders to walk away, along with various outdated rules and
guidelines hindering the financing of projects.
In order for small businesses to take advantage of these programs, we
must listen to this feedback and alter our programs accordingly. That
is why I introduced H.R. 8211.
This bill would make an array of improvements to the 504 program,
making it more accessible to small businesses and ultimately driving
economic development and growth.
In a time of economic crisis and unemployment, we must continue to
invest in our small businesses, specifically small manufacturers, in
order to promote economic development and the creation and retention of
good-paying jobs. We must do everything we can
[[Page H6076]]
to support small manufacturers and ensure that the SBA programs
available to them are operating as effectively and efficiently as
possible.
In addition, H.R. 8199, the 504 Credit Risk Management Improvement
Act of 2020, which is also under floor consideration later today, would
further clarify provisions in the 504 program, enhancing its
accessibility and effectiveness.
Mr. Speaker, small businesses are the heart of this economy, and with
the improvements from H.R. 8211 and H.R. 8199, more small businesses
will be able to grow and ultimately contribute to the economic
landscape of not only their communities but this country.
I urge all of my colleagues to support these bills before us today.
Mr. CHABOT. Mr. Speaker, I have no other speakers and I am prepared
to close, so I yield myself the balance of my time.
Mr. Speaker, I urge my colleagues to support this bipartisan
legislation. As our Nation's small businesses continue to face numerous
capital access challenges, the SBA's existing government guarantee loan
programs must be prepared to provide assistance. This bill, H.R. 8211,
does just that by expanding the 504/CDC Loan Program's economic
development goals and enhancing the program for small manufacturers.
This program has a proven record of the success, and the improvements
that this legislation delivers will continue this track record into the
future.
I ask for my colleagues' support, and I yield back the balance of my
time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
The SBA's 504 program has enjoyed a track record of success in
delivering affordable, long-term capital to small businesses for
acquiring land, real estate, or heavy machinery.
Furthermore, the CDCs who deliver the program are actively involved
in promoting local economic development, especially for underserved
business communities.
As the chair of the Small Business Committee, I have seen the values
CDCs have delivered in my community in New York City, across the State,
and across the country. I am proud of our opportunity here today to
continue supporting their work and helping entrepreneurs access
affordable capital, especially as our local economies continue
adjusting to the realities of conducting business in the COVID-19 era.
I want to applaud the work by Ms. Craig and Ranking Member Chabot for
their collaboration to improve the 504 loan program.
I encourage all my colleagues to support this bill, and I yield back
the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from New York (Ms. Velazquez) that the House suspend the
rules and pass the bill, H.R. 8211, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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