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true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R41184", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 622212, "date": "2020-04-10", "retrieved": "2020-04-11T22:59:18.912153", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2019, the SBA approved 6,099 504/CDC loans amounting to nearly $5 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA), P.L. 111-240, P.L. 114-113, and P.L. 116-136, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act, among other provisions, appropriated $17 billion to pay the principal, interest, and any associated fees that are owed on an existing 7(a), 504/CDC, or Microloan that is in a regular servicing status for a six-month period starting on the next payment due date.\nThis report also discusses issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "7f38491f4a29f741e8672c3c05f7b306a14b879c", "filename": "files/20200410_R41184_7f38491f4a29f741e8672c3c05f7b306a14b879c.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "8a7dec79ee3a615e2cc7fc9b5db46836095f220e", "filename": "files/20200410_R41184_8a7dec79ee3a615e2cc7fc9b5db46836095f220e.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 620473, "date": "2020-03-20", "retrieved": "2020-03-22T17:38:53.078016", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2019, the SBA approved 6,099 504/CDC loans amounting to nearly $5 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA), P.L. 111-240, P.L. 114-113, and legislation introduced during the 116th Congress to assist small businesses adversely affected by the coronavirus (COVID-19). It also discusses issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "978104f85494b919a6949a73abe2c527844bbba4", "filename": "files/20200320_R41184_978104f85494b919a6949a73abe2c527844bbba4.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "45d065a83978ecf369f97a4ca025e129b3728b51", "filename": "files/20200320_R41184_45d065a83978ecf369f97a4ca025e129b3728b51.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 620349, "date": "2020-03-19", "retrieved": "2020-03-20T18:02:39.989118", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2019, the SBA approved 6,099 504/CDC loans amounting to nearly $5 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; P.L. 114-113; and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "16feec3b55585926f1cd6b237a10fec9cfc76f44", "filename": "files/20200319_R41184_16feec3b55585926f1cd6b237a10fec9cfc76f44.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "f02aa4a08c79223382e92a73b9f3a53405cb9132", "filename": "files/20200319_R41184_f02aa4a08c79223382e92a73b9f3a53405cb9132.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 606573, "date": "2019-10-23", "retrieved": "2019-10-24T22:04:00.988905", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2019, the SBA approved 6,099 504/CDC loans amounting to nearly $5 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; P.L. 114-113; and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "95c988e87b71616e37b815e99a048dbe743950e1", "filename": "files/20191023_R41184_95c988e87b71616e37b815e99a048dbe743950e1.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "c36b639bc29515d89777440f6a2328d79ca0cc4b", "filename": "files/20191023_R41184_c36b639bc29515d89777440f6a2328d79ca0cc4b.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 603405, "date": "2019-08-07", "retrieved": "2019-08-12T22:08:01.060934", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2018, the SBA approved 5,874 504/CDC loans amounting to nearly $4.8 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; P.L. 114-113; and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "cfa62f07fba7aa84cec2e490a33c7f2afb8c3c97", "filename": "files/20190807_R41184_cfa62f07fba7aa84cec2e490a33c7f2afb8c3c97.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "fa7463254fbc80bc4e2eb82355509959f183dad8", "filename": "files/20190807_R41184_fa7463254fbc80bc4e2eb82355509959f183dad8.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 598812, "date": "2019-05-29", "retrieved": "2019-05-29T22:00:54.614050", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2018, the SBA approved 5,874 504/CDC loans amounting to nearly $4.8 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; P.L. 114-113; and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "23121af78e8393a4291a581014b241536d55fdf9", "filename": "files/20190529_R41184_23121af78e8393a4291a581014b241536d55fdf9.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "f20a275b4e397540a9a8f5394e62566d5965db32", "filename": "files/20190529_R41184_f20a275b4e397540a9a8f5394e62566d5965db32.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 596959, "date": "2019-04-19", "retrieved": "2019-05-03T14:17:38.419717", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2018, the SBA approved 5,874 504/CDC loans amounting to nearly $4.8 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; P.L. 114-113; and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "a0ab08e4f5a8121417d450df5fab9c9657f67273", "filename": "files/20190419_R41184_a0ab08e4f5a8121417d450df5fab9c9657f67273.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "d0fad86503889c984376b82362353f3fdd083c11", "filename": "files/20190419_R41184_d0fad86503889c984376b82362353f3fdd083c11.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 590360, "date": "2019-01-24", "retrieved": "2019-04-17T14:30:29.430801", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the SBA\u2019s sale of 504/CDC debentures. In FY2018, the SBA approved 5,874 504/CDC loans amounting to nearly $4.8 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program; its borrower and lender eligibility standards; operating requirements; and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; P.L. 114-113; and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41184", "sha1": "814a569310354b94ad173e508eb70be3d3f01c15", "filename": "files/20190124_R41184_814a569310354b94ad173e508eb70be3d3f01c15.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41184", "sha1": "f019d09e2fd3261e02deadae2732208d4a12ce01", "filename": "files/20190124_R41184_f019d09e2fd3261e02deadae2732208d4a12ce01.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 587238, "date": "2018-11-02", "retrieved": "2018-11-05T14:37:59.555851", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2018, the SBA approved 5,874 504/CDC loans amounting to nearly $4.8 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113, and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "f4dd072f1935f09b2de698d94490cf5e2c9a466f", "filename": "files/20181102_R41184_f4dd072f1935f09b2de698d94490cf5e2c9a466f.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "c6a86ace7055dab6d40182dc499fe1df67b5d27c", "filename": "files/20181102_R41184_c6a86ace7055dab6d40182dc499fe1df67b5d27c.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 586492, "date": "2018-10-22", "retrieved": "2018-10-22T22:01:06.968182", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2018, the SBA approved 5,874 504/CDC loans amounting to nearly $4.8 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113, and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "ea4cadee46c69cfd9fef676accca495d2411dd17", "filename": "files/20181022_R41184_ea4cadee46c69cfd9fef676accca495d2411dd17.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "451f2a1e5ecd02a40ea0721cdb37effb17c55e53", "filename": "files/20181022_R41184_451f2a1e5ecd02a40ea0721cdb37effb17c55e53.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 584965, "date": "2018-09-10", "retrieved": "2018-09-12T22:18:24.408330", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2017, the SBA approved 6,218 504/CDC loans amounting to about $5.0 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010 \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113, and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "e68b505a05a004285fb4e3af7383179ee3348242", "filename": "files/20180910_R41184_e68b505a05a004285fb4e3af7383179ee3348242.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "a785e56627f260019d57eabc35a3e09d804db34b", "filename": "files/20180910_R41184_a785e56627f260019d57eabc35a3e09d804db34b.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 584124, "date": "2018-04-06", "retrieved": "2018-08-27T15:20:29.692249", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDCs). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2017, the SBA approved 6,218 504/CDC loans amounting to about $5.0 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to enable them to grow and create jobs. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010, \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113, and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "2655966a6709a6176c98d4c8ba31cae8e84261b1", "filename": "files/20180406_R41184_2655966a6709a6176c98d4c8ba31cae8e84261b1.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "0b0d0a06e3b1525b1bcf13f5cfb2e3732951d32e", "filename": "files/20180406_R41184_0b0d0a06e3b1525b1bcf13f5cfb2e3732951d32e.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 576132, "date": "2017-12-05", "retrieved": "2017-12-07T14:06:48.350537", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDC). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2017, the SBA approved 6,218 504/CDC loans amounting to about $5.0 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to assist in the economic recovery. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010, \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113, and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "00d7f904723c1d2449045ccd76e31bdf5bc1d230", "filename": "files/20171205_R41184_00d7f904723c1d2449045ccd76e31bdf5bc1d230.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "a840faf73e38177c26777c2ee7e50b27c09e893f", "filename": "files/20171205_R41184_a840faf73e38177c26777c2ee7e50b27c09e893f.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 465443, "date": "2017-09-15", "retrieved": "2017-10-02T22:23:52.205214", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDC). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2016, the SBA approved 5,938 504/CDC loans amounting to about $4.74 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to assist in the economic recovery. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010, \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, proceeds usage, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113, and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "adffdac9b3a380bbea79efef40030e6a39674234", "filename": "files/20170915_R41184_adffdac9b3a380bbea79efef40030e6a39674234.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "12478c51f006c7b9c80245492017834b55c0e874", "filename": "files/20170915_R41184_12478c51f006c7b9c80245492017834b55c0e874.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 457754, "date": "2016-12-14", "retrieved": "2016-12-22T16:31:35.294011", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDC). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2016, the SBA approved 5,938 504/CDC loans amounting to about $4.74 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to assist in the economic recovery. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010, \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, use of proceeds, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113, and issues related to the SBA\u2019s oversight of 504/CDC lenders.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "19c312b5e5df00df4690ae12b2cb1d956b654567", "filename": "files/20161214_R41184_19c312b5e5df00df4690ae12b2cb1d956b654567.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "d536d8d244f793e96f1fb165b12266febcc13ee7", "filename": "files/20161214_R41184_d536d8d244f793e96f1fb165b12266febcc13ee7.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 456377, "date": "2016-10-12", "retrieved": "2016-10-17T19:16:30.091601", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDC). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2016, the SBA approved 5,938 504/CDC loans amounting to about $4.74 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to assist in the economic recovery. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010, \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, use of proceeds, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including the enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "469da8502546d619acf4a399bd22182a540f8d69", "filename": "files/20161012_R41184_469da8502546d619acf4a399bd22182a540f8d69.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "4241939e3ce0516015f4a1a7ccbca9a38c51845e", "filename": "files/20161012_R41184_4241939e3ce0516015f4a1a7ccbca9a38c51845e.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 452925, "date": "2016-05-26", "retrieved": "2016-06-21T21:13:42.625819", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDC). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2015, the SBA approved 5,787 504/CDC loans amounting to about $4.3 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to assist in the economic recovery. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010, \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act requires each CDC to limit its refinancing so that, during any fiscal year, the new refinancings do not exceed 50% of the dollars it loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, use of proceeds, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including the enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240; and P.L. 114-113.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "c587245452eb98dcb0e865232fbe08f6bbd2f7d4", "filename": "files/20160526_R41184_c587245452eb98dcb0e865232fbe08f6bbd2f7d4.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "be5ad4851cc97f0be0a5833e181bcd49d6d8fa0b", "filename": "files/20160526_R41184_be5ad4851cc97f0be0a5833e181bcd49d6d8fa0b.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 2636, "name": "Small Business Policy" } ] }, { "source": "EveryCRSReport.com", "id": 448697, "date": "2016-01-13", "retrieved": "2016-04-06T17:30:29.971840", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": "The Small Business Administration (SBA) administers programs to support small businesses, including several loan guaranty programs designed to encourage lenders to provide loans to small businesses \u201cthat might not otherwise obtain financing on reasonable terms and conditions.\u201d The SBA\u2019s 504 Certified Development Company (504/CDC) loan guaranty program is administered through nonprofit Certified Development Companies (CDC). It provides long-term fixed rate financing for major fixed assets, such as land, buildings, equipment, and machinery. Of the total project costs, a third-party lender must provide at least 50% of the financing, the CDC provides up to 40% of the financing through a 100% SBA-guaranteed debenture, and the applicant provides at least 10% of the financing. Its name is derived from Section 504 of the Small Business Investment Act of 1958 (P.L. 85-699, as amended), which provides the most recent authorization for the sale of 504/CDC debentures. In FY2015, the SBA approved 5,787 504/CDC loans amounting to about $4.3 billion.\nCongressional interest in the SBA\u2019s 504/CDC program has increased in recent years because of concern that small businesses might be prevented from accessing sufficient capital to assist in the economic recovery. For example, during the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010, \nincreased the 504/CDC program\u2019s loan guaranty limits from $1.5 million to $5 million for \u201cregular\u201d borrowers, from $2 million to $5 million if the loan proceeds are directed toward one or more specified public policy goals, and from $4 million to $5.5 million for manufacturers;\ntemporarily expanded, for two years, the types of projects eligible for 504/CDC program refinancing of existing debt;\ncreated an alternative 504/CDC size standard to increase the number of businesses eligible for assistance; and \nprovided $505 million (plus an additional $5 million for administrative expenses) to extend temporary fee subsidies for the 504/CDC and 7(a) loan guaranty programs and a temporary increase in the 7(a) program\u2019s maximum loan guaranty percentage to 90%. \nThe temporary fee subsidies and 90% loan guaranty percentage ended on January 3, 2011, and the temporary expansion of the projects eligible for 504/CDC program refinancing of existing debt expired on September 27, 2012.\nDuring the 114th Congress, P.L. 114-113, the Consolidated Appropriations Act, 2016, reinstated the expansion of the types of projects eligible for refinancing under the 504/CDC loan guaranty program in any fiscal year in which the refinancing program and the 504/CDC program as a whole do not have credit subsidy costs. The act generally limits the expanded refinancing to no more than 50% of the dollars loaned under the 504/CDC program during the previous fiscal year. \nThis report examines the rationale provided for the 504/CDC program, its borrower and lender eligibility standards, operating requirements, and performance statistics, including loan volume, loss rates, use of proceeds, borrower satisfaction, and borrower demographics.\nThis report also examines congressional action taken to help small businesses gain greater access to capital, including the enactment of P.L. 111-5, the American Recovery and Reinvestment Act of 2009 (ARRA); P.L. 111-240, and P.L. 114-113.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41184", "sha1": "cc5cabf3d453a6a08a083d86f797c899c5c65c6e", "filename": "files/20160113_R41184_cc5cabf3d453a6a08a083d86f797c899c5c65c6e.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41184", "sha1": "d8f9594326246200c8d8daf82e23a4edf694d0e9", "filename": "files/20160113_R41184_d8f9594326246200c8d8daf82e23a4edf694d0e9.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 2636, "name": "Small Business Policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc812220/", "id": "R41184_2015Nov12", "date": "2015-11-12", "retrieved": "2016-03-19T13:57:26", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20151112_R41184_e0b1ad0a37fe28560909267d06b8c07384d32a78.pdf" }, { "format": "HTML", "filename": "files/20151112_R41184_e0b1ad0a37fe28560909267d06b8c07384d32a78.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc805176/", "id": "R41184_2015Feb19", "date": "2015-02-19", "retrieved": "2016-03-19T13:57:26", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20150219_R41184_4540a11e5ef9889cb27c2d65bc3aad008211976f.pdf" }, { "format": "HTML", "filename": "files/20150219_R41184_4540a11e5ef9889cb27c2d65bc3aad008211976f.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc806324/", "id": "R41184_2010Oct04", "date": "2010-10-04", "retrieved": "2016-03-19T13:57:26", "title": "Small Business Administration 504/CDC Loan Guaranty Program", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20101004_R41184_907e92e828791068bed981f32e8ae45c9117d96a.pdf" }, { "format": "HTML", "filename": "files/20101004_R41184_907e92e828791068bed981f32e8ae45c9117d96a.html" } ], "topics": [] } ], "topics": [ "American Law", "Economic Policy" ] }