Congressional Record, House, April 14, 2021 — 504 Modernization and Small Manufacturer Enhancement Act
Summary
Congressional Record, House, page H1769, April 14, 2021, under the heading 504 Modernization and Small Manufacturer Enhancement Act of 2021. Ms. Davids of Kansas moves to suspend the rules and pass H.R. 1490, a bill to amend the Small Business Investment Act of 1958 to improve the loan guaranty program and enhance the ability of small manufacturers to access affordable capital, and the Clerk reads the title. The page prints the text of the bill, including the short title and a section headed Improvements to 504 Loan Closing Procedure. Later, Mr. Luetkemeyer speaks, and another motion to suspend the rules is made for H.R. 1482, a bill to amend the Small Business Act to enhance the Office of Credit Risk Management.
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“Congressional Record, House, April 14, 2021 — 504 Modernization and Small Manufacturer Enhancement Act.”
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April 14, 2021 CONGRESSIONAL RECORD — HOUSE H1769
504 MODERNIZATION AND SMALL (2) in subsection (a), as so designated— ‘‘(c) ACCREDITED LENDER CERTIFIED COM-
MANUFACTURER ENHANCEMENT (A) in paragraph (2)(A)— PANY DEFINED.—In this section, the term ‘ac-
ACT OF 2021 (i) in the matter preceding clause (i), by credited lender certified company’ means a
striking ‘‘section’’ and inserting ‘‘sub- certified development company that meets
Ms. DAVIDS of Kansas. Madam section’’; and the requirements under section 507(b), in-
Speaker, I move to suspend the rules (ii) in clause (iii), by striking ‘‘$5,500,000’’ cluding a certified development company
and pass the bill (H.R. 1490) to amend and inserting ‘‘$6,500,000’’; and that the Administration has designated as
the Small Business Investment Act of (B) in paragraph (3)(A), by striking ‘‘this an accredited lender under such section
1958 to improve the loan guaranty pro- section’’ and inserting ‘‘this subsection’’. 507(b).’’; and
(2) by adding at the end the following new
gram, enhance the ability of small SEC. 4. IMPROVEMENTS TO 504 LOAN CLOSING
PROCEDURE. section:
manufacturers to access affordable ‘‘SEC. 511. CLOSING AND OVERSIGHT.
capital, and for other purposes. Title V of the Small Business Investment
Act of 1958 (15 U.S.C. 695 et seq.) is amend- ‘‘(a) SBA DISTRICT COUNSELS.—Beginning
The Clerk read the title of the bill. on the date of enactment of this section,
The text of the bill is as follows: ed—
(1) in section 502, as amended by section 3, with respect to the program established
H.R. 1490 under this title, district counsels of the Ad-
by adding at the end the following new sub-
Be it enacted by the Senate and House of Rep- ministration shall be subject to the same re-
sections:
resentatives of the United States of America in quirements, and shall have the same author-
‘‘(b) CLOSING.—
Congress assembled, ity and responsibilities, as in effect with re-
‘‘(1) AUTHORITY OF CERTAIN DEVELOPMENT spect to that program on the day before the
SECTION 1. SHORT TITLE.
COMPANIES.—An accredited lender certified
This Act may be cited as the ‘‘504 Mod- date of enactment of this section, except
company may take any of the following ac- that—
ernization and Small Manufacturer Enhance-
tions to facilitate the closing of a loan made ‘‘(1) the Office of Credit Risk Management
ment Act of 2021’’.
under subsection (a): of the Administration shall have the respon-
SEC. 2. ADDITIONS TO POLICY GOALS FOR THE
DEVELOPMENT COMPANY PRO-
‘‘(A) Reallocate the cost of the project sibility for all duties relating to conducting
GRAM. with respect to which the loan is made in an file reviews of loans made under this title;
Section 501(d)(3) of the Small Business In- amount that is not more than 10 percent of and
vestment Act of 1958 (15 U.S.C. 695(d)(3)) is the overall cost of the project. ‘‘(2) district counsels of the Administration
amended— ‘‘(B) Correct any name that is applicable to shall not have any responsibility relating to
(1) by redesignating subparagraphs (A) the loan, including the name of any bor- the review of closing packages with respect
through (L) as subparagraphs (B) through rower, guarantor, eligible passive company to a loan made under this title.
(M), respectively; described in subparagraph (C)(i), and oper- ‘‘(b) DESIGNATED ATTORNEYS.—For the pur-
(2) by inserting before subparagraph (B) (as ating company described in subparagraph poses of this title, the following provisions
so redesignated) the following: (C)(ii). and requirements shall apply with respect to
‘‘(A) workforce development through work- ‘‘(C) Form any of the following to receive a designated attorney of a certified develop-
based or work-integrated training, which proceeds of the loan: ment company:
shall be satisfied by demonstrating that a ‘‘(i) An eligible passive company that com- ‘‘(1) A designated attorney that meets the
small business concern that is a subject of plies with section 120.111 of title 13, Code of requirements determined under paragraph
the project has— Federal Regulations, or any successor regu- (2) shall be responsible for certifying docu-
‘‘(i) a documented in-house training pro- lation. ments relating to the closing of a loan de-
gram, the duration of which is not shorter ‘‘(ii) If an eligible passive company is scribed in this title.
than 12 weeks; or formed under clause (i), an operating com- ‘‘(2) The Administrator may determine any
‘‘(ii) entered into a contract with an enti- pany with respect to that eligible passive continuing education requirements that the
ty— company. designated attorney shall be required to sat-
‘‘(I) to provide trained applicants for any ‘‘(D) Correct the address of any property isfy in order to be permitted to close a loan
open position of employment at the small with respect to which the loan is made. made under this title.
business concern; and ‘‘(E) Correct the name of any interim lend- ‘‘(3) If, as of the date of enactment of this
‘‘(II) that ensures that any applicant pro- er or third-party lender. section, a certified development company
vided to the small business concern under ‘‘(F) Change any third-party lender or in- does not have a designated attorney, during
subclause (I) has undergone not fewer than 12 terim lender if that lender is a financial in- the 270-day period beginning on that date of
weeks of training that is relevant to the stitution that is regulated by the Federal enactment, the certified development com-
open position described in that subclause,’’; Government or a State government. pany may identify such an attorney, subject
(3) by amending subparagraph (D) (as so re- ‘‘(G) Make a guarantor a co-borrower or a to the approval of the Administrator.’’.
designated) to read as follows: co-borrower a guarantor. SEC. 5. CERTIFIED DEVELOPMENT COMPANY
‘‘(D) expansion of minority-owned, em- ‘‘(H) Add a guarantor that does not change LOANS FOR SMALL MANUFACTUR-
ployee-owned, or women-owned business de- ownership with respect to the loan. ERS.
velopment,’’; ‘‘(I) Reduce the amount of standby debt be- (a) CONTRIBUTION REQUIREMENT.—Section
(4) in subparagraph (L) (as so redesig- fore the closing as a result of regularly 502(a)(3)(C) of the Small Business Investment
nated), by striking ‘‘producers, or’’ and in- scheduled payments. Act of 1958, as designated by section 3, is
serting ‘‘producers,’’; ‘‘(J) Reduce the cost of the project with re- amended—
(5) in subparagraph (M) (as so redesig- spect to which the loan is made. (1) by redesignating clauses (i), (ii), (iii),
nated), by striking the period at the end and ‘‘(2) FEES.—The Administrator shall— and (iv) as subclauses (I), (II), (III), and (IV),
inserting a comma; ‘‘(A) issue a rule regarding the amount of respectively, and adjusting the margins of
(6) by inserting after subparagraph (M) the a closing fee that may be financed in a de- such subclauses accordingly;
following new subparagraphs: benture that is issued by a certified develop- (2) by inserting before subclause (I), as so
‘‘(N) enhanced ability for small business ment company to make one or more loans to redesignated, the following:
concerns to reduce costs by using energy ef- small business concerns, the proceeds of ‘‘(i) for a small business concern that is
ficient products and generating renewable which are used by that concern for the pur- not a small manufacturer (as defined in sec-
energy, poses described in subsection (a), except that tion 501(e)(7))—’’;
‘‘(O) aid revitalizing of any area for which such amount shall be not less than $3,500; (3) in subclause (III), as so redesignated, by
a disaster has been declared or determined and striking ‘‘clauses (i) and (ii)’’ and inserting
under subparagraph (A), (B), (C), or (E) of ‘‘(B) periodically update the rule issued ‘‘subclauses (I) and (II)’’;
section 7(b)(2) of the Small Business Act, or under subparagraph (A). (4) in subclause (IV) as so redesignated, by
‘‘(P) expansion of small business concerns ‘‘(3) NO ADVERSE CHANGE AND FINANCIAL striking the period and the end and inserting
with 10 or fewer employees.’’; and STATEMENT.—Before the closing with respect ‘‘; or’’; and
(7) in the flush text following subparagraph to a loan made under subsection (a), the bor- (5) by adding at the end the following:
(P), as added by paragraph (6), by striking rower and any operating company shall— ‘‘(ii) for a small manufacturer (as defined
‘‘subparagraphs (J) and (K)’’ and inserting ‘‘(A) make the certification required under in section 501(e)(7))—
‘‘subparagraphs (K) and (L)’’. section 120.892 of title 13, Code of Federal ‘‘(I) at least 5 percent of the total cost of
SEC. 3. INCREASE IN LOAN AMOUNTS FOR MANU- Regulations, or any successor regulation; the project financed, if the small business
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FACTURING LOANS. and concern has been in operation for a period of
Section 502 of the Small Business Invest- ‘‘(B) submit to the certified development 2 years or less;
ment Act of 1958 (15 U.S.C. 696) is amended— company a financial statement that is not ‘‘(II) at least 5 percent of the total cost of
(1) in the matter preceding paragraph (1), more than 180 days old, which the company the project financed, if the project involves a
by striking ‘‘The Administration’’ and in- shall certify not later than 120 days before limited or single purpose building or struc-
serting the following: the date on which the certified development ture;
‘‘(a) IN GENERAL.—The Administration’’; company issues a debenture with respect to ‘‘(III) at least 10 percent of the total cost of
and the project to which the loan relates. the project financed if the project involves
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H1770 CONGRESSIONAL RECORD — HOUSE April 14, 2021
both of the conditions set forth in subclauses cluding with respect to the application proc- mercial lease made under this paragraph
(I) and (II); or ess under that program and partnering with shall be for a term of not more than 5
‘‘(IV) at least 5 percent of the total cost of development companies under this title. years.’’.
the project financed, in all other cir- ‘‘(b) RESOURCE PARTNER DEFINED.—In this (b) REPORT.—Not later than 5 years after
cumstances, at the discretion of the develop- section, the term ‘resource partner’ means— the date of the enactment of this Act, the
ment company.’’. ‘‘(1) a small business development center Administrator of the Small Business Admin-
(b) CREATION OR RETENTION OF JOBS RE- (defined in section 3 of the Small Business istration shall submit to Congress a report
QUIREMENT.—Section 501(e) of the Small Act); analyzing the impact of the amendments
Business Investment Act of 1958 (15 U.S.C. ‘‘(2) a women’s business center (described made by this section on access to capital for
695(e)) is amended— under section 29 of such Act); small business concerns (as defined under
(1) in paragraph (1), by striking ‘‘creates or ‘‘(3) a chapter of the Service Corps of Re- section 3 of the Small Business Act (15 U.S.C.
retains’’ and all that follows through the pe- tired Executives (established under section 632)), and recommending whether similar no-
riod at the end and inserting ‘‘creates or re- 8(b)(1)(B) of such Act); and tice, examination, and certifications require-
tains 1 job for every $75,000 guaranteed by ‘‘(4) a Veteran Business Outreach Center ments should be made to the program estab-
the Administration, except that the amount (described under section 32 of such Act).’’. lished under section 7(a) of the Small Busi-
is $150,000 in the case of a project of a small SEC. 7. LEASING RULES FOR NEW FACILITIES ness Act (15 U.S.C. 636(a)).
AND EXISTING BUILDINGS.
manufacturer.’’; The SPEAKER pro tempore. Pursu-
(2) in paragraph (2), by striking ‘‘creates or (a) IN GENERAL.—Section 502(a) of the
Small Business Investment Act of 1958, as ant to the rule, the gentlewoman from
retains’’ and all that follows through the pe- Kansas (Ms. DAVIDS) and the gen-
riod at the end and inserting ‘‘creates or re- designated by section 3, is amended by strik-
tains 1 job for every $75,000 guaranteed by
ing paragraphs (4) and (5) and inserting the tleman from Missouri (Mr. LUETKE-
following new paragraphs: MEYER) each will control 20 minutes.
the Administration, except that the amount
‘‘(4) NEW FACILITIES.— The Chair recognizes the gentle-
is $150,000 in the case of a project of a small
‘‘(A) IN GENERAL.—With respect to a woman from Kansas.
manufacturer.’’;
project to construct a new facility, an as-
(3) by redesignating paragraph (6) as para- GENERAL LEAVE
sisted small business concern may perma-
graph (7); and Ms. DAVIDS of Kansas. Madam
nently lease not more than 20 percent of the
(4) by inserting after paragraph (5) the fol- Speaker, I ask unanimous consent that
project if such concern—
lowing: ‘‘(i) permanently occupies and uses not less all Members may have 5 legislative
‘‘(6) For a loan for a project directed to- than 60 percent of the project;
ward the creation of job opportunities under
days in which to revise and extend
‘‘(ii) plans to occupy and use an additional their remarks and include extraneous
subsection (d)(1), the Administrator shall portion of the project that is not perma-
publish on the website of the Administration material on the measure under consid-
nently leased not later than 3 years after re-
the number of jobs created or retained under ceipt of assistance under this section; and
eration.
the project as of the date that is 2 years after ‘‘(iii) plans to permanently occupy and use The SPEAKER pro tempore. Is there
the completion (as determined based on in- 80 percent of the project not later than 10 objection to the request of the gentle-
formation provided by the development com- years after receipt of such assistance. woman from Kansas?
pany) of the project.’’. ‘‘(B) SMALL MANUFACTURERS.—With respect There was no objection.
(c) COLLATERAL REQUIREMENTS.—Section to an assisted small business concern that is Ms. DAVIDS of Kansas. Madam
502(a)(3)(E)(i) of the Small Business Invest- a small manufacturer (as defined in section Speaker, I yield myself such time as I
ment Act of 1958, as designated by section 3, 501(e)(6)), subparagraph (A)(i) shall apply
is amended by adding at the end the fol-
may consume.
with ‘50 percent’ substituted for ‘60 percent’. Madam Speaker, I rise in support of
lowing: ‘‘Additional collateral shall not be ‘‘(5) EXISTING BUILDINGS.—With respect to a
required in the case of a small manufacturer the bill before us today, H.R. 1490, the
project to acquire, renovate, or reconstruct
(as defined in section 501(e)(7)).’’. an existing building, the following shall
504 Modernization and Small Manufac-
(d) DEBT REFINANCING.—Section 502(a)(7)(B) apply: turer Enhancement Act of 2021.
of the Small Business Investment Act of ‘‘(A) OCCUPANCY REQUIREMENTS.—The as- 504 loans are an important SBA cap-
1958, as designated by section 3, is amended— sisted small business concern may perma- ital access product, allowing small
(1) in the matter preceding clause (i) by in- nently lease not more than 50 percent of the businesses to affordably purchase ma-
serting ‘‘(or in the case of a small manufac- project if the concern permanently occupies chinery and equipment, acquire real es-
turer (as defined in section 501(e)(7)), that and uses not less than 50 percent of the tate, or take on other fixed asset costs.
does not exceed 100 percent of the project project.
cost of the expansion)’’ after ‘‘cost of the ex-
The loan has a three-party structure
‘‘(B) EXCEPTION.—The assisted small busi- where an SBA-backed 504 lender pro-
pansion’’; ness concern may permanently lease more
(2) in clause (v), by adding ‘‘and’’ at the than 50 percent of the project if—
vides 40 percent of the financing, a
end; ‘‘(i) such concern— third-party lender provides 50 percent
(3) by striking clause (vi); and ‘‘(I) has occupied and used the existing of the financing, and a small business
(4) by redesignating clause (vii) as clause building for a consecutive 12-month period borrower provides 10 percent. This
(vi). before submitting an application for assist- unique structure has helped thousands
(e) AMOUNT OF GUARANTEED DEBENTURE.— ance under this section; of entrepreneurs expand their busi-
Section 503(a) of the Small Business Invest- ‘‘(II) agrees to permanently use less than
ment Act of 1958 (15 U.S.C. 697(a)) is amended
nesses and hire more employees, espe-
50 percent of the existing building and per- cially businesses with significant fixed
by adding at the end the following: manently lease more than 50 percent for a
‘‘(5) Any debenture issued by a State or consecutive 12-month period after receiving
costs.
local development company to a small man- such assistance; and
Last Congress, the Committee on
ufacturer (as defined in section 501(e)(7)) ‘‘(III) affirms that the existing building is Small Business’s Subcommittee on
with respect to which a guarantee is made appropriate for current and reasonably an- Oversight, Investigations, and Regula-
under this subsection shall be in an amount ticipated needs; and tions held a hearing to review the cur-
equal to not more than 50 percent of the cost ‘‘(ii) the development company assisting rent status of the 504 loan program. We
of the project with respect to which such de- such project— heard from a panel of 504 lenders who
benture is issued, without regard to whether ‘‘(I) provides written notice to the Admin-
good cause has been shown.’’.
reported concerns with the loan closing
istrator on the date on which the develop- process, specifically that closing delays
SEC. 6. ASSISTANCE FOR SMALL MANUFACTUR- ment company closes the loan for such
ERS. project; and
have caused loans to fall through and
Title V of the Small Business Investment ‘‘(II) once each year during the first 5 years businesses to lose out on affordable fi-
Act of 1958 (15 U.S.C. 695 et seq.), as amended of the loan, and once every 2 years for the re- nancing.
by section 4(2), is further amended by adding mainder of the loan— To that end, Ms. CRAIG put forth a
at the end the following new section: ‘‘(aa) conducts an examination of the as- strong proposal to streamline the 504
‘‘SEC. 512. ASSISTANCE FOR SMALL MANUFAC- sisted small business concern to ensure the loan closing process and make compli-
TURERS. concern is not a real estate development ance easier for CDCs, borrowers, and
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‘‘(a) IN GENERAL.—The Administrator shall business; and third-party lenders, who are essential
ensure that each district office of the Admin- ‘‘(bb) files with the Administrator an anti-
to the 504 loan structure.
istration partners with not less than 1 re- investor certification signed by the develop-
Two of the provisions of that bill,
source partner to provide training to small ment company and the assisted small busi-
business concerns assigned a North Amer- ness concern. which passed unanimously through our
ican Industry Classification System code for ‘‘(C) LEASE TERM.—Any residential lease committee and the House, were also in-
manufacturing on obtaining assistance under made under this paragraph shall be for a cluded in the Economic Aid Act that
the program carried out under this title, in- term of not more than 1 year, and any com- was enacted in December.
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April 14, 2021 CONGRESSIONAL RECORD — HOUSE H1771
The version of the bill before us small manufacturers. By increasing the Nate’s story, like so many others, is
today is identical to the version we maximum loan amount for small man- proof that the 504 loan program can
passed last Congress, but for those pro- ufacturers, H.R. 1490 ensures these change the lives of small business own-
visions included in the Economic Aid small businesses have the capital to ex- ers in this country. This program en-
Act. pand and create jobs in Missouri and sures that small businesses like Nate’s
The changes under consideration beyond. are able to succeed, bringing home the
today continue to address the issues we Enhancements to lending resources job growth and economic stability that
have heard in our engagement with 504 and tools, such as those outlined in our communities are striving for, espe-
lenders and their borrowers in our dis- H.R. 1490, is exactly what our small cially as we emerge from this dev-
tricts, and I am pleased we are taking businesses, entrepreneurs, and startups astating economic crisis.
a vote on them today. need. Because these are not simply busi-
I want to highlight the work of Ms. nesses. These are livelihoods, family
b 1445 CRAIG from Minnesota, Mrs. KIM from traditions, and priceless contributions
These include increasing the max- California, Mr. CHABOT from Ohio, and to our communities, and we have an
imum loan size for small manufactur- Ms. DAVIDS from Kansas on this impor- opportunity to support them on a bi-
ers from $5.5 million to $6.5 million and tant matter. I would also like to thank partisan basis by taking action today.
easing the job retention or creation re- the chairwoman for her efforts as well. Madam Speaker, I urge all of my col-
quirement for them, which helps make The changes in H.R. 1490 will improve leagues to come together and join me
504 loans easier to access. delivery of the 504/CDC loan program in supporting these bills and businesses
We should be doing everything that for all of America’s small businesses. I across our Nation.
we can to make navigating and uti- urge all my colleagues to support H.R. Mr. LUETKEMEYER. Madam Speak-
lizing this program as simple as pos- 1490. er, I yield such time as she may con-
sible. As a member of the Small Busi- Madam Speaker, I reserve the bal- sume to the gentlewoman from Cali-
ness Committee, I am committed to ance of my time. fornia (Mrs. KIM), someone who be-
helping our small businesses and manu- Ms. DAVIDS of Kansas. Madam lieves in cutting red tape to help ease
facturers weather this current crisis Speaker, I yield such time as she may the regulatory burden on all our small
and to helping Main Street come back consume to the gentlewoman from businesses.
even stronger. Minnesota (Ms. CRAIG). Mrs. KIM of California. Madam
It is why I fought to secure $10 bil- Ms. CRAIG. Madam Speaker, for over Speaker, I thank Representative
lion for the Defense Production Act in a year now, small businesses in my dis- LUETKEMEYER for his leadership in the
trict and across the country have House Small Business Committee. I
the American Rescue Plan Act to ramp
struggled to make it through this pub- would also like to extend my special
up domestic production of PPE and
lic health and economic crisis. As a re- thanks to Chairwoman VELÁZQUEZ for
other critical supplies. It is also why I
sult of this pandemic, prospective putting forward these very important
introduced the SUPPLIES Act, which
small business owners face a steeper bills.
would promote the manufacturing of
climb than ever before. Madam Speaker, I rise in strong sup-
PPE and medical supplies by small We must do more to make it easy to
businesses here in the U.S. I am proud port of H.R. 1490, the 504 Modernization
start, operate, and expand a small busi- and Small Manufacturer Enhancement
to be a cosponsor of the bill to help ness in our communities. One of the
small businesses and manufacturers so Act of 2021.
most important ways that we can do I was proud to join my colleagues,
they can help us. this is by ensuring that the Small Representatives CRAIG, DAVIDS, and
I want to thank the gentlewoman Business Administration’s loan pro- CHABOT, to introduce this bipartisan
from Minnesota and the gentlewoman grams are operating as effectively and bill to modernize the SBA’s 504 loan
from California for their hard work, efficiently as possible. program. The program was established
and I applaud their efforts to make bi- Today, we have two bills that would with the mission to incentivize eco-
partisan improvements to this valuable do exactly that, including my bipar- nomic growth and job creation by pro-
program. tisan bill, the 504 Modernization and viding small businesses with affordable
I recommend a ‘‘yes’’ vote to all my Small Manufacturer Enhancement Act. long-term financing.
colleagues in the House. These crucial bipartisan pieces of legis- Our bill will provide the SBA with
Madam Speaker, I reserve the bal- lation will not only increase the the tools to assist small businesses as
ance of my time. amount of capital available to manu- they recover during COVID–19. H.R.
Mr. LUETKEMEYER. Madam Speak- facturers, but will actually ease the 1490 would expand eligibility of 504
er, I yield myself such time as I may process of getting a loan because, in loans for small businesses that have fo-
consume. the midst of a severe economic crisis, cused on workforce development, revi-
Madam Speaker, I rise in support of our businessowners simply cannot be talized areas hit hard by the pandemic
H.R. 1490, the 504 Modernization and bogged down in red tape and legalese. or disaster areas, and implemented en-
Small Manufacturer Enhancement Act Taken together, these bills will help ergy-efficient products, or have 10 or
of 2021. to promote the economic development fewer employees. These additions will
When capital options are limited for of small manufacturers, creating good strengthen the 504 loan program for the
a small business, the SBA offers nu- paying jobs in growing industries all long run and help small businesses in
merous lending programs, including across this country. my community access much-needed
the 504/Certified Development Com- To demonstrate just how impactful capital.
pany Loan Program. Also known as a these loans can be, I want to tell you The bill will also streamline the clos-
504/CDC loan, the program provides about Nate Bry, a lifelong resident of ing process of 504 loans. Specifically,
long-term and fixed-rate financing that Rosemount, Minnesota. Thirteen years H.R. 1490 allows Certified Development
primarily supports purchases of real es- ago, Nate founded a sports apparel Companies to rectify documentation
tate and machinery. company called Custom Apparel Inc. in without the implicit approval of the
Due to the program’s unique cost the basement of his home. After years SBA. These corrections will allow
structure that includes a small busi- of hard work, Nate felt that it was fi- small businesses to make investments
ness, a lender, and a certified develop- nally time to reach a turning point, in their community or hire more work-
ment company, the process is often but he didn’t have the resources he ers without delay.
lengthy and cumbersome. H.R. 1490 needed to take his business to the next Lastly, the bill would support our
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takes important steps to streamline level. When Nate received a 504 loan, he small manufacturers to ensure that our
the closing process and ensures the Na- was immediately able to invest in his community’s manufacturing base re-
tion’s job creators move through the company, building a facility to manu- mains strong and competitive during
program in a smooth and efficient facture his products right in his home- these difficult times.
manner. town, creating good–paying jobs in the Madam Speaker, I urge my col-
Additionally, H.R. 1490 enhances the very same community where he grew leagues on both sides of the aisle to
504/CDC loan program for America’s up. support H.R. 1490.
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H1772 CONGRESSIONAL RECORD — HOUSE April 14, 2021
Ms. DAVIDS of Kansas. Madam his office and here. Apparently he is require the Administrator of the Small
Speaker, I reserve the balance of my not here on time, so I am prepared to Business Administration to issue rules
time. close. relating to environmental obligations
Mr. LUETKEMEYER. Madam Speak- Madam Speaker, as our economy con- of certified development companies,
er, I yield such time as she may con- tinues to recover and as our small busi- and for other purposes.
sume to the gentlewoman from New nesses rebuild, existing Federal Gov- The Clerk read the title of the bill.
York (Ms. TENNEY), a small business ernment programs, tools, and resources The text of the bill is as follows:
owner herself who knows the impor- need to be ready to provide assistance. H.R. 1482
tance of cutting red tape and how it Processes that are slow and unwieldy Be it enacted by the Senate and House of Rep-
can be linked to success of a small must be examined and retooled to en- resentatives of the United States of America in
Congress assembled,
business. sure they are working on behalf of SECTION 1. SHORT TITLE.
Ms. TENNEY. Madam Speaker, I small businesses and the American This Act may be cited as the ‘‘504 Credit
thank Chairwoman VELÁZQUEZ and public. Risk Management Improvement Act of 2021’’.
Ranking Member LUETKEMEYER for H.R. 1490, the 504 Modernization and SEC. 2. ENHANCEMENTS TO THE OFFICE OF
bringing forth this great bipartisan Small Manufacturer Enhancement Act CREDIT RISK MANAGEMENT.
bill. of 2021, takes these steps to streamline Section 47 of the Small Business Act (15
I rise today in support of H.R. 1490, the program while ensuring it is a via- U.S.C. 657t) is amended—
the 504 Modernization and Small Manu- (1) by striking subsection (b) and inserting
ble option for small businesses as they
the following:
facturer Enhancement Act. I am proud recover and grow. ‘‘(b) DUTIES.—The Office—
to cosponsor this bill with my col- Additionally, H.R. 1490 places a di- ‘‘(1) shall be responsible for—
leagues from both sides of the aisle. rect focus on our Nation’s small manu- ‘‘(A) supervising—
This bipartisan legislation improves facturers. We must continue to work in ‘‘(i) any lender making loans under section
the loan guaranty program and helps a bipartisan manner to ensure these 7(a) (in this section referred to as a ‘7(a)
small manufacturers access capital by programs are ready for recovery. lender’);
streamlining the loan process and pro- With that, I urge my colleagues to ‘‘(ii) any Lending Partner or Intermediary
participant of the Administration in a lend-
viding support to manufacturers who support H.R. 1490. ing program of the Office of Capital Access
apply for the loan from local Small Madam Speaker, I yield back the bal- of the Administration;
Business Administration district of- ance of my time. ‘‘(iii) any small business lending company
fices. Ms. DAVIDS of Kansas. Madam or a non-Federally regulated lender without
As small businesses across the coun- Speaker, I yield myself such time as I regard to the requirements of section 23; and
try and throughout New York’s 22nd may consume. ‘‘(iv) any certified development company
District continue to struggle with the Madam Speaker, the SBA’s 504 loan described under the program established
devastating impacts of COVID–19, we program has made a significant impact under title V of the Small Business Invest-
must provide targeted support to our ment Act of 1958 (referred to in this section
on our Main Streets in its 62-year his-
as a ‘certified development company’), as
small businesses and manufacturers, tory. provided in subsection (k); and
and H.R. 1490 does just that. In addition to partnering with banks ‘‘(B) conducting file reviews with respect
This legislation increases the max- to extend affordable fixed-asset capital, to loan closings under the program estab-
imum loan amount to $6.5 million and most CDCs in the program are also ac- lished under title V of the Small Business In-
requires SBA district offices to partner tively involved in promoting local eco- vestment Act of 1958, as provided in sub-
with SBA resource partners to provide nomic development, especially for un- section (j); and
entrepreneurial development assist- derserved business communities. ‘‘(2) may—
ance to small manufacturers, which are I am proud of the opportunity we ‘‘(A) take formal and informal enforcement
actions against a certified development com-
abundant in central New York. have today to continue supporting the pany, as provided in subsection (l); and
This bill will also work to lower costs work of CDCs. I want to applaud the ‘‘(B) charge a certified development com-
and streamline numerous administra- work by the gentlewoman from Min- pany a fee, as provided in subsection (m).’’;
tive processes for small manufacturers, nesota, the gentlewoman from Cali- and
giving these businesses the tools and fornia, and their bipartisan effort on (2) by adding at the end the following new
support they need to keep their doors the 504 program. subsections:
open, something that has been said to I encourage all of my colleagues to ‘‘(j) LOAN CLOSING FILE REVIEWS.—With re-
me repeatedly through numerous town- spect to a loan closing under the program es-
vote ‘‘yes.’’ tablished under title V of the Small Business
halls with the small business commu- Madam Speaker, I yield back the bal- Investment Act of 1958, the Office shall be re-
nity around the region. ance of my time. sponsible for the following:
As a member of the House Small The SPEAKER pro tempore. The ‘‘(1) Conducting a complete file review of a
Business Committee and, as the rank- question is on the motion offered by random selection of all loan closings, the
ing member indicated, the owner of a the gentlewoman from Kansas (Ms. DA- number, frequency, and conduct of which
small manufacturing facility that is in VIDS) that the House suspend the rules shall be at the discretion of the Office, to en-
its 75th year in central New York, I am sure program integrity, including a review of
and pass the bill, H.R. 1490.
the items listed on the Checklist for Com-
pleased to cosponsor H.R. 1490 and the The question was taken. plete File Review contained in the appro-
other three small business bills on the The SPEAKER pro tempore. In the priate form of the Administration.
floor today. These four bills will pro- opinion of the Chair, two-thirds being ‘‘(2) Not later than 60 days after the date
vide targeted relief to small businesses in the affirmative, the ayes have it. on which each complete file review con-
across New York’s 22nd District and Mr. WEBER of Texas. Madam Speak- ducted under paragraph (1) is completed, pre-
throughout the Nation. At a time when er, on that I demand the yeas and nays. paring a written report documenting the re-
Americans seek true bipartisanship The SPEAKER pro tempore. Pursu- sults of that review, which the Office shall
from its elected officials, I am honored ant to section 3(s) of House Resolution send to—
‘‘(A) the applicable certified development
to be part of that effort. 8, the yeas and nays are ordered. company;
Madam Speaker, I thank Representa- Pursuant to clause 8 of rule XX, fur- ‘‘(B) the designated attorney that closed
tive CRAIG from Minnesota and Rep- ther proceedings on this motion are the loan for the certified development com-
resentative KIM from California for postponed. pany; and
their leadership on this issue. I look f ‘‘(C) the Commercial Loan Service Center.
forward to continuing to work with ‘‘(3) If a complete file review conducted
SSpencer on DSK126QN23PROD with HOUSE
them on this matter. 504 CREDIT RISK MANAGEMENT under paragraph (1) reveals a deficiency that
Ms. DAVIDS of Kansas. Madam IMPROVEMENT ACT OF 2021 could result in a loss to the Administration,
Speaker, I continue to reserve the bal- Ms. DAVIDS of Kansas. Madam requiring the applicable certified develop-
ment company or the designated attorney to
ance of my time. Speaker, I move to suspend the rules
promptly correct the deficiency.
Mr. LUETKEMEYER. Madam Speak- and pass the bill (H.R. 1482) to amend ‘‘(k) SUPERVISION OF CERTIFIED DEVELOP-
er, we have one more gentleman com- the Small Business Act to enhance the MENT COMPANIES.—With respect to the super-
ing, but there is a long path between Office of Credit Risk Management, to vision of certified development companies—
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