Bishop Introduces Bill to Increase Efficiency at SBA
Congressman Dan Bishop (NC-09) introduced the 504 Credit Risk Management Improvement Act of 2020, to increase the efficiency of a Small Business Administration (SBA) loan program for major assets. The bill would bolster and solidify the Office of Credit Risk Management as it oversees the SBA's 504 Loan Program to prevent wasted resources and irresponsible use of funds.
"As small businesses begin to recover from the COVID-19 pandemic, it is crucial for SBA programs to operate at maximum efficiency. In order for the 504 program to support small businesses, we must ensure tax dollars are properly used through additional oversight and consistently applied rules for businesses," said Rep. Bishop.
"I'm proud to be cosponsoring this bipartisan legislation to improve the Small Business Administration's 504 loan program," said Rep. Angie Craig (MN-02). "We must do everything we can to support small businesses during this time and protect the jobs they sustain. The 504 Credit Risk Management Improvement Act of 2020 will clarify provisions of the 504 loan program making it easier for businesses to access these loans, and promote development in our communities."
The 504/CDC Loan Program provides long-term and fixed-rate financing to qualified small businesses and assists with the acquisition of major fixed assets or updates. The 504 Credit Risk Management Improvement Act of 2020 would increase oversight responsibilities of the Office of Credit Risk Management and creates clear action items if the SBA's rules are violated. It also requires clarification of environmental regulations for small businesses receiving 504 loans.
Congressman Bishop serves on the Small Business Committee, which oversees the Small Business Administration and the 504 Loan program.