The American Bankers Association and a coalition of trade groups today urged congressional leaders to increase the authorization level for the Small Business Administration’s 504 loan program. Demand is expected to reach the program’s authorization cap of $7.5 billion in early summer, likely June.
Without congressional action, the program would be unavailable to small businesses for an entire quarter of the fiscal year until the authorization level resets, the groups wrote. The program previously reached its congressionally authorized cap on Sept. 7, 2021, and SBA was unable to approve new 504 loans until the program’s authorization level reset on Oct. 1.
That three-week shutdown of the program caused a number of issues for small-business borrowers, including the loss of real estate and endangered escrow, the groups wrote.