504 Loan Program Expansion Implemented

SBA Policy Notice 5000-940 published December 21, 2004, provides implementation information and instructions on the 504 Loan Program legislative changes that became law on December 8, 2004.

As previously announced, on December 8, President Bush signed HR4818 (Omnibus Spending Bill for FY 2005) reauthorizing the SBA 504 loan program for 2005 and 2006 and increasing the debenture size to $1.5 million for regular loans, $2 million for public policy loans and $4 million for manufacturing loans.

Additionally the legislation makes 504 program fees permanent, increases the 504 lending authority to $5 billion in 2005, and raises the program reauthorization level to $6 billion in FY 2005 and $7.5 billion in FY 2006.

Increases have also been made in the job creation and retention requirement test. The calculations for job creation and retention requirements are based on the total loan portfolio of the CDC currently stated in the SOP and in the SBA Policy Notice 5000-940.

SBA Policy Notice 5000-940 published December 21, 2004, provides implementation information and instructions on the 504 Loan Program legislative changes that became law on December 8, 2004.

Link to SBA policy Notice

.