This bill modernizes the Small Business Administration's 504 loan program, which provides affordable financing to small businesses for real estate and equipment purchases. The legislation particularly benefits small manufacturers by increasing the maximum loan amount from $5.5 million to $10 million for manufacturing projects, reducing their required cash contribution to as low as 5 percent of project costs, and eliminating additional collateral requirements. The bill also streamlines the loan closing process by allowing certified development companies greater flexibility in finalizing loans, such as reallocating project costs and correcting borrower information without SBA district counsel oversight. Additionally, the legislation expands the 504 program's policy goals to include workforce development, renewable energy adoption, disaster recovery assistance, and support for very small businesses with 10 or fewer employees. Finally, the bill requires SBA district offices to partner with local small business development resources to provide training specifically to manufacturers seeking 504 loans. No specific funding amounts or implementation timelines beyond a 180-day transition period are specified in the legislation.
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