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.
Summary
What This Bill Does
The bill adds new policy goals to SBA 504 development company program including workforce development (12-week training requirement), employee-owned business expansion, energy efficiency, disaster area revitalization, expands increases maximum SBA 504 loan amount for manufacturing loans from $5,500,000 to $10,000,000, and creates allows accredited lender certified development companies to perform 10 administrative actions to facilitate loan closings without SBA re-approval, including cost reallocation up to 10%, name corrections, lender. It relies on deregulation, mandate, program creation, and loan guarantees. The main policy areas are Finance, Small Business, and Trade.
Who Benefits and How
Small manufacturers seeking SBA 504 loans could face fewer barriers, Small manufacturers seeking 504 loans could gain revenue opportunities, and Certified development companies (accredited lenders) could face lower compliance burdens.
Who Bears the Burden and How
SBA loan guarantee program could face increased risk, SBA district offices would take on compliance duties, and SBA Office of Credit Risk Management would take on compliance duties.
Key Provisions
- Adds new policy goals to SBA 504 development company program including workforce development (12-week training requirement), employee-owned business expansion, energy efficiency, disaster area revitalization...
- Expands increases maximum SBA 504 loan amount for manufacturing loans from $5,500,000 to $10,000,000.
- Creates allows accredited lender certified development companies to perform 10 administrative actions to facilitate loan closings without SBA re-approval, including cost reallocation up to 10%, name corrections, lender...
- Creates transfers loan file review responsibility from SBA district counsels to the Office of Credit Risk Management, allows designated attorneys at CDCs to certify closing documents with continuing education...
- Reduces equity injection requirements for small manufacturers to 5% in most cases (vs standard 10-20%), eliminates additional collateral requirements, and raises maximum project size from 75% to 100% of net worth.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill adds new policy goals to SBA 504 development company program including workforce development (12-week training requirement), employee-owned business expansion, energy efficiency, disaster area revitalization, expands increases maximum SBA 504 loan amount for manufacturing loans from $5,500,000 to $10,000,000, and creates allows accredited lender certified development companies to perform 10 administrative actions to facilitate loan closings without SBA re-approval, including cost reallocation up to 10%, name corrections, lender.
Key Policy Areas
Finance, Small Business, Trade
Primary Purpose
The bill adds new policy goals to SBA 504 development company program including workforce development (12-week training requirement), employee-owned business expansion, energy efficiency, disaster area revitalization, expands increases maximum SBA 504 loan amount for manufacturing loans from $5,500,000 to $10,000,000, and creates allows accredited lender certified development companies to perform 10 administrative actions to facilitate loan closings without SBA re-approval, including cost reallocation up to 10%, name corrections, lender.
Policy Domains
504 Modernization and Small Manufacturer Enhancement Act of 2025
Identified Gains
- Small manufacturers seeking SBA 504 loans
- Small manufacturers seeking 504 loans
- Certified development companies (accredited lenders)
- Small manufacturers with new facilities
- Small manufacturers (NAICS manufacturing codes)
Identified Costs
- SBA loan guarantee program
- SBA district offices
- SBA Office of Credit Risk Management
Sponsors
Amy Klobuchar
D-MN | Primary Sponsor
Legislative Progress
IntroducedMs. Klobuchar (for herself and Mr. Young) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Businesses in disaster-declared areas, Minority-owned, women-owned, and employee-owned businesses, SBA resource partners
SBA Office of Credit Risk Management, SBA district counsels, SBA district offices
Positive-direction: SBA district counsels, SBA oversight capacity
Negative-direction: SBA Office of Credit Risk Management, SBA district offices, SBA loan guarantee program
Small manufacturers, Small manufacturers (NAICS manufacturing codes), Small manufacturers seeking 504 loans
Certified development companies, Certified development companies (accredited lenders)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_administrator"
- → Administrator of the SBA
- "the_administration"
- → Small Business Administration (SBA)
- "development_company"
- → Certified Development Company (CDC)
Key Definitions
Terms defined in this bill
A certified development company that meets the requirements under section 507(b), designated as an accredited lender
As defined in section 501(e)(7) of the Small Business Investment Act
SBDCs, women business centers, SCORE chapters, or Veteran Business Outreach Centers
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology