504 Program Risk Oversight Act

Floor Speech

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Mr. TRAN. Madam Speaker, I rise today in strong support of H.R. 5788, the 504 Program Risk Oversight Act, bipartisan legislation that strengthens one of SBA's most successful financing programs.

For decades, the SBA's 504 loan program has been a cornerstone of economic development in communities across America. Through public and private partnership with certified development companies, the 504 program helps small businesses to grow, create jobs, and invest in their communities.

Since its inception in 1986, the program has provided approximately $400 billion in total project financing and created over 3.3 million jobs. In California alone, that translates to $95 billion in total capital and the creation of over 715,000 good-paying jobs.

For entrepreneurs in California's 45th District and across the Nation, the 504 loan program's unique model provides them with access to long-term, fixed-rate financing to help them to expand operations, purchase property, and make lasting investments in their local economy.

In Orange County and Los Angeles County alone, the 504 program has injected more than $27 billion into local businesses and helped to create over 175,000 jobs over the last 25 years.

My bipartisan bill, the 504 Program Risk Oversight Act, builds on that success by ensuring that all partners--the SBA, Congress, and industry--have access to clear, consistent, and transparent data about the health of the program.

Currently, SBA is not required to conduct an annual risk analysis of the 504 loan program and provide Congress with any performance data. My bill addresses this problem and requires the SBA to conduct an annual risk assessment of the 504 program and provide Congress with detailed insights into overall health of the program and information needed to strengthen program performance.

Madam Speaker, transparent data is the cornerstone of a productive partnership between the SBA, Congress, and industry and the work that we do collectively to keep the 504 program healthy for future generations of entrepreneurs. Now more than ever, small businesses need what the 504 loan program provides: certainty and affordable patient capital.

Madam Speaker, I am proud to lead this bill, and I thank my colleague, Representative Jimmy Patronis, for his partnership in co- leading this important piece of legislation with me. Of course, this bill would not be possible without the leadership of Ranking Member Velazquez and Chair Williams.

Madam Speaker, I urge my colleagues to support this bill.

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