2 versions

CosmeticWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (Sep 14, 2026)

Technical corrections only. The diff includes updated sponsorship information and procedural notations related to the bill's reporting out of committee. No substantive policy changes were made between v1 and v2.

H.R. 10352119th CongressIntroduced Sep 14, 2026

504 Program Level Flexibility Act

Reported To HouseCommerceSubstantive

View bill text

Sponsor: Rep. Simon, Lateefah [D-CA-12]
Committees: Small Business Committee (primary)
Last action: Oct 9, 2026

This analysis was written for v1 (INTRODUCED IN HOUSE, Sep 14, 2026). REPORTED IN HOUSE changed too little to need its own, so it reuses that one rather than a rewrite. The differences between the two are summarized above. View v1

Bottom line

This bill provides the SBA with limited, conditional flexibility to expand the 504 loan program's reach in response to demand, potentially increasing access to capital for small businesses.

What it actually does

This bill grants the Administrator of the Small Business Administration (SBA) discretionary authority to increase the annual limit on loan guarantees under the 504 loan program by up to 15% for a given fiscal year, starting in fiscal year 2027. This authority can be exercised once per fiscal year, provided the Administrator notifies specific congressional committees 30 days in advance.

Proponents argue

Supporters argue this flexibility is crucial for the SBA to respond dynamically to economic conditions and small business demand for capital, preventing qualified businesses from being denied loans due to arbitrary caps. It ensures the 504 program can continue to support job creation and economic growth without requiring new legislation for every adjustment, streamlining the process.

Opponents contend

Opponents might express concerns about granting the Administrator unilateral authority to increase federal financial exposure without direct congressional approval each time, potentially leading to increased risk for taxpayers or a lack of oversight. They might argue that the existing appropriations process is the appropriate mechanism for setting loan limits, ensuring regular review and accountability.

The bill is very short and easy to read, allowing ample time for informed evaluation.

Section 2, amending Section 503 of the Small Business Investment Act of 1958 (15 U.S.C. 697) by adding subsection (j).

Authority to Increase 504 Loan Program Commitments

prominently featuredstraightforward

This provision allows the Administrator of the Small Business Administration (SBA) to increase the total amount of loan guarantees under the 504 loan program by up to 15% above the statutorily set limit for a given fiscal year, starting in fiscal year 2027. This authority can only be exercised once per fiscal year and requires the Administrator to notify specific congressional committees 30 days in advance of doing so.

GroupImpactMechanismScale

GroupSmall BusinessesImpactIncreased access to capital for expansion, equipment, or real estate.MechanismPotential for more 504 loans to be approved if demand exceeds the initial cap.ScalePotentially up to 15% more loans than initially authorized.

GroupState or Local Development Companies (CDCs)ImpactGreater capacity to facilitate 504 loans, potentially increasing their activity and revenue.MechanismCDCs can process more loans if the SBA's commitment authority is expanded.ScaleDirect correlation with the increase in SBA commitment authority.

GroupFederal Government/TaxpayersImpactIncreased potential financial exposure due to more loan guarantees.MechanismThe government guarantees a portion of 504 loans; increasing the volume increases the total guaranteed amount.ScaleUp to 15% increase in total guaranteed loan volume.

Supporters argue

Supporters argue that this flexibility ensures the 504 program can meet the real-time needs of small businesses, especially during periods of high demand or economic recovery, without being constrained by outdated or insufficient annual caps. It streamlines the process by allowing the SBA to act quickly rather than waiting for legislative action.

Critics contend

Critics might contend that this provision delegates too much authority to the executive branch, bypassing congressional oversight on federal spending and risk exposure. They may argue that annual appropriations bills are the proper mechanism for setting loan limits, ensuring regular review and accountability.

Tradeoffs

The provision balances the need for administrative flexibility and responsiveness to market demand against congressional oversight and control over federal financial commitments and potential taxpayer risk.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.