[Congressional Record Volume 167, Number 64 (Wednesday, April 14, 2021)]
[House]
[Pages H1769-H1772]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





    504 MODERNIZATION AND SMALL MANUFACTURER ENHANCEMENT ACT OF 2021

  Ms. DAVIDS of Kansas. Madam Speaker, I move to suspend the rules and 
pass the bill (H.R. 1490) 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.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1490

       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 2021''.

     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,'';
       (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) Accredited Lender Certified Company Defined.--In this 
     section, 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) 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

[[Page H1770]]

     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 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--
       (1) 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'';
       (2) in clause (v), by adding ``and'' at the end;
       (3) by striking clause (vi); and
       (4) by redesignating clause (vii) as clause (vi).
       (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 (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)).

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Kansas (Ms. Davids) and the gentleman from Missouri (Mr. Luetkemeyer) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from Kansas.


                             General Leave

  Ms. DAVIDS of Kansas. Madam 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 Kansas?
  There was no objection.
  Ms. DAVIDS of Kansas. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, I rise in support of the bill before us today, H.R. 
1490, the 504 Modernization and Small Manufacturer Enhancement Act of 
2021.
  504 loans are an important SBA capital access product, allowing small 
businesses to affordably purchase machinery and equipment, acquire real 
estate, or take on other fixed asset costs.
  The loan has a three-party structure where an SBA-backed 504 lender 
provides 40 percent of the financing, a third-party lender provides 50 
percent of the financing, and a small business borrower provides 10 
percent. This unique structure has helped thousands of entrepreneurs 
expand their businesses and hire more employees, especially businesses 
with significant fixed costs.
  Last Congress, the Committee on Small Business's Subcommittee on 
Oversight, Investigations, and Regulations held a hearing to review the 
current status of the 504 loan program. We heard from a panel of 504 
lenders who reported concerns with the loan closing process, 
specifically that closing delays have caused loans to fall through and 
businesses to lose out on affordable financing.
  To that end, Ms. Craig put forth a strong proposal to streamline the 
504 loan closing process and make compliance easier for CDCs, 
borrowers, and third-party lenders, who are essential to the 504 loan 
structure.
  Two of the provisions of that bill, which passed unanimously through 
our committee and the House, were also included in the Economic Aid Act 
that was enacted in December.

[[Page H1771]]

  The version of the bill before us today is identical to the version 
we passed last Congress, but for those provisions included in the 
Economic Aid Act.
  The changes under consideration today continue to address the issues 
we have heard in our engagement with 504 lenders and their borrowers in 
our districts, and I am pleased we are taking a vote on them today.

                              {time}  1445

  These include increasing the maximum loan size for small 
manufacturers from $5.5 million to $6.5 million and easing the job 
retention or creation requirement for them, which helps make 504 loans 
easier to access.
  We should be doing everything that we can to make navigating and 
utilizing this program as simple as possible. As a member of the Small 
Business Committee, I am committed to helping our small businesses and 
manufacturers weather this current crisis and to helping Main Street 
come back even stronger.
  It is why I fought to secure $10 billion for the Defense Production 
Act in the American Rescue Plan Act to ramp up domestic production of 
PPE and other critical supplies. It is also why I introduced the 
SUPPLIES Act, which would promote the manufacturing of PPE and medical 
supplies by small businesses here in the U.S. I am proud to be a 
cosponsor of the bill to help small businesses and manufacturers so 
they can help us.
  I want to thank the gentlewoman from Minnesota and the gentlewoman 
from California for their hard work, and I applaud their efforts to 
make bipartisan improvements to this valuable program.
  I recommend a ``yes'' vote to all my colleagues in the House.
  Madam Speaker, I reserve the balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 1490, the 504 Modernization 
and Small Manufacturer Enhancement Act of 2021.
  When capital options are limited for a small business, the SBA offers 
numerous lending programs, including the 504/Certified Development 
Company Loan Program. Also known as a 504/CDC loan, the program 
provides long-term and fixed-rate financing that primarily supports 
purchases of real estate and machinery.
  Due to the program's unique cost structure that includes a small 
business, a lender, and a certified development company, the process is 
often lengthy and cumbersome. H.R. 1490 takes important steps to 
streamline the closing process and ensures the Nation's job creators 
move through the program in a smooth and efficient manner.
  Additionally, H.R. 1490 enhances the 504/CDC loan program for 
America's small manufacturers. By increasing the maximum loan amount 
for small manufacturers, H.R. 1490 ensures these small businesses have 
the capital to expand and create jobs in Missouri and beyond.
  Enhancements to lending resources and tools, such as those outlined 
in H.R. 1490, is exactly what our small businesses, entrepreneurs, and 
startups need.
  I want to highlight the work of Ms. Craig from Minnesota, Mrs. Kim 
from California, Mr. Chabot from Ohio, and Ms. Davids from Kansas on 
this important matter. I would also like to thank the chairwoman for 
her efforts as well.
  The changes in H.R. 1490 will improve delivery of the 504/CDC loan 
program for all of America's small businesses. I urge all my colleagues 
to support H.R. 1490.
  Madam Speaker, I reserve the balance of my time.
  Ms. DAVIDS of Kansas. Madam Speaker, I yield such time as she may 
consume to the gentlewoman from Minnesota (Ms. Craig).
  Ms. CRAIG. Madam Speaker, for over a year now, small businesses in my 
district and across the country have struggled to make it through this 
public health and economic crisis. As a result of this pandemic, 
prospective small business owners face a steeper climb than ever 
before.
  We must do more to make it easy to start, operate, and expand a small 
business in our communities. One of the most important ways that we can 
do this is by ensuring that the Small Business Administration's loan 
programs are operating as effectively and efficiently as possible.
  Today, we have two bills that would do exactly that, including my 
bipartisan bill, the 504 Modernization and Small Manufacturer 
Enhancement Act. These crucial bipartisan pieces of legislation will 
not only increase the amount of capital available to manufacturers, but 
will actually ease the process of getting a loan because, in the midst 
of a severe economic crisis, our businessowners simply cannot be bogged 
down in red tape and legalese.
  Taken together, these bills will help to promote the economic 
development of small manufacturers, creating good paying jobs in 
growing industries all across this country.
  To demonstrate just how impactful these loans can be, I want to tell 
you about Nate Bry, a lifelong resident of Rosemount, Minnesota. 
Thirteen years ago, Nate founded a sports apparel company called Custom 
Apparel Inc. in the basement of his home. After years of hard work, 
Nate felt that it was finally time to reach a turning point, but he 
didn't have the resources he needed to take his business to the next 
level. When Nate received a 504 loan, he was immediately able to invest 
in his company, building a facility to manufacture his products right 
in his hometown, creating good-paying jobs in the very same community 
where he grew up.
  Nate's story, like so many others, is proof that the 504 loan program 
can change the lives of small business owners in this country. This 
program ensures that small businesses like Nate's are able to succeed, 
bringing home the job growth and economic stability that our 
communities are striving for, especially as we emerge from this 
devastating economic crisis.
  Because these are not simply businesses. These are livelihoods, 
family traditions, and priceless contributions to our communities, and 
we have an opportunity to support them on a bipartisan basis by taking 
action today.
  Madam Speaker, I urge all of my colleagues to come together and join 
me in supporting these bills and businesses across our Nation.
  Mr. LUETKEMEYER. Madam Speaker, I yield such time as she may consume 
to the gentlewoman from California (Mrs. Kim), someone who believes in 
cutting red tape to help ease the regulatory burden on all our small 
businesses.

  Mrs. KIM of California. Madam Speaker, I thank Representative 
Luetkemeyer for his leadership in the House Small Business Committee. I 
would also like to extend my special thanks to Chairwoman Velazquez for 
putting forward these very important bills.
  Madam Speaker, I rise in strong support of H.R. 1490, the 504 
Modernization and Small Manufacturer Enhancement Act of 2021.
  I was proud to join my colleagues, Representatives Craig, Davids, and 
Chabot, to introduce this bipartisan bill to modernize the SBA's 504 
loan program. The program was established with the mission to 
incentivize economic growth and job creation by providing small 
businesses with affordable long-term financing.
  Our bill will provide the SBA with the tools to assist small 
businesses as they recover during COVID-19. H.R. 1490 would expand 
eligibility of 504 loans for small businesses that have focused on 
workforce development, revitalized areas hit hard by the pandemic or 
disaster areas, and implemented energy-efficient products, or have 10 
or fewer employees. These additions will strengthen the 504 loan 
program for the long run and help small businesses in my community 
access much-needed capital.
  The bill will also streamline the closing process of 504 loans. 
Specifically, H.R. 1490 allows Certified Development Companies to 
rectify documentation without the implicit approval of the SBA. These 
corrections will allow small businesses to make investments in their 
community or hire more workers without delay.
  Lastly, the bill would support our small manufacturers to ensure that 
our community's manufacturing base remains strong and competitive 
during these difficult times.
  Madam Speaker, I urge my colleagues on both sides of the aisle to 
support H.R. 1490.

[[Page H1772]]

  

  Ms. DAVIDS of Kansas. Madam Speaker, I reserve the balance of my 
time.
  Mr. LUETKEMEYER. Madam Speaker, I yield such time as she may consume 
to the gentlewoman from New York (Ms. Tenney), a small business owner 
herself who knows the importance of cutting red tape and how it can be 
linked to success of a small business.
  Ms. TENNEY. Madam Speaker, I thank Chairwoman Velazquez and Ranking 
Member Luetkemeyer for bringing forth this great bipartisan bill.
  I rise today in support of H.R. 1490, the 504 Modernization and Small 
Manufacturer Enhancement Act. I am proud to cosponsor this bill with my 
colleagues from both sides of the aisle.
  This bipartisan legislation improves the loan guaranty program and 
helps small manufacturers access capital by streamlining the loan 
process and providing support to manufacturers who apply for the loan 
from local Small Business Administration district offices.
  As small businesses across the country and throughout New York's 22nd 
District continue to struggle with the devastating impacts of COVID-19, 
we must provide targeted support to our small businesses and 
manufacturers, and H.R. 1490 does just that.
  This legislation increases the maximum loan amount to $6.5 million 
and requires SBA district offices to partner with SBA resource partners 
to provide entrepreneurial development assistance to small 
manufacturers, which are abundant in central New York.
  This bill will also work to lower costs and streamline numerous 
administrative processes for small manufacturers, giving these 
businesses the tools and support they need to keep their doors open, 
something that has been said to me repeatedly through numerous 
townhalls with the small business community around the region.
  As a member of the House Small Business Committee and, as the ranking 
member indicated, the owner of a small manufacturing facility that is 
in its 75th year in central New York, I am pleased to cosponsor H.R. 
1490 and the other three small business bills on the floor today. These 
four bills will provide targeted relief to small businesses across New 
York's 22nd District and throughout the Nation. At a time when 
Americans seek true bipartisanship from its elected officials, I am 
honored to be part of that effort.
  Madam Speaker, I thank Representative Craig from Minnesota and 
Representative Kim from California for their leadership on this issue. 
I look forward to continuing to work with them on this matter.
  Ms. DAVIDS of Kansas. Madam Speaker, I continue to reserve the 
balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, we have one more gentleman coming, 
but there is a long path between his office and here. Apparently he is 
not here on time, so I am prepared to close.
  Madam Speaker, as our economy continues to recover and as our small 
businesses rebuild, existing Federal Government programs, tools, and 
resources need to be ready to provide assistance. Processes that are 
slow and unwieldy must be examined and retooled to ensure they are 
working on behalf of small businesses and the American public.
  H.R. 1490, the 504 Modernization and Small Manufacturer Enhancement 
Act of 2021, takes these steps to streamline the program while ensuring 
it is a viable option for small businesses as they recover and grow.
  Additionally, H.R. 1490 places a direct focus on our Nation's small 
manufacturers. We must continue to work in a bipartisan manner to 
ensure these programs are ready for recovery.
  With that, I urge my colleagues to support H.R. 1490.
  Madam Speaker, I yield back the balance of my time.
  Ms. DAVIDS of Kansas. Madam Speaker, I yield myself such time as I 
may consume.
  Madam Speaker, the SBA's 504 loan program has made a significant 
impact on our Main Streets in its 62-year history.
  In addition to partnering with banks to extend affordable fixed-asset 
capital, most CDCs in the program are also actively involved in 
promoting local economic development, especially for underserved 
business communities.
  I am proud of the opportunity we have today to continue supporting 
the work of CDCs. I want to applaud the work by the gentlewoman from 
Minnesota, the gentlewoman from California, and their bipartisan effort 
on the 504 program.
  I encourage all of my colleagues to vote ``yes.''
  Madam Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Kansas (Ms. Davids) that the House suspend the rules 
and pass the bill, H.R. 1490.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. WEBER of Texas. Madam Speaker, on that I demand the yeas and 
nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

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