504 Modernization and Small Manufacturer Enhancement Act of 2020

Floor Speech

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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One was the lengthy and complex loan closing process which caused third-party lenders to walk away, along with various outdated rules and guidelines hindering the financing of projects.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 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.

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