U.S. Rep. Marie Newman recently filed legislation aimed at expanding a federal small-business loan program.
The bill is designed to expand the Small Business Administration’s 504 Loan Program by increasing its lending authority by 15% this fiscal year, according to a news release.
Newman, D-La Grange, said the loan program is at risk of exceeding its lending authority and effectively shutting down for the remainder of the fiscal year, potentially leaving thousands of small businesses without access to loans they need to survive.
“As a former small-business owner, I know that access to long-term federal loans can mean the difference between an open business and closing your doors forever,” Newman said in a statement. “With the SBA’s loan program at risk of shutting down for the rest of this year, Congress has a fundamental obligation to intervene so we can ensure our small businesses are receiving the long-term relief and assistance they need to fully recover from this pandemic.”
Newman added that expanding the SBA’s loan program this year would help save “countless mom and pop shops, family-owned stores and other local community businesses.”
The SBA’s 504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation.
The loans are made available through Certified Development Companies, SBA’s community-based partners who regulate nonprofits and promote economic development within their communities.