SBA Proposes Updates to 504 and 7(a) Loan Programs

A proposed rule issued by the Small Business Administration would amend SBA’s two flagship business lending programs. According to the SBA, changing conditions in the American economy and persistent high levels of unemployment necessitate improved access to its 504 Loan Program and 7(a) Loan Program. The rule is intended to reinvigorate these programs as vital tools for creating and preserving American jobs. The rule also seeks to remove regulatory restrictions that detract from the 504 Loan Program’s core job creation mission and the 7(a) Loan Program’s positive job creation impact on the American economy. The proposed amendments to SBA Part 120 and SBA Part 121 address job creation by increasing eligibility for loans under SBA’s business loan programs, including its Microloan Program, and by modifying program participant requirements that apply to the 504 Loan Program. Further, the rule would revise Certified Development Company operational requirements to clarify certain existing regulations. Comments addressing RIN 3245-AG04 are due April 26, 2013. For the text of the rule, see ¶70,425.486.