Small Business Administration 504/CDC Loan Guaranty Program

Author / Creator

Library of Congress. Government Division

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Online

Summary

This report is one in a series of updates. For the most recent coverage of this report series, please see 13-R4-1184g in the 2013 issue. Discusses rationale for SBA 504/certified development compan...

This report is one in a series of updates. For the most recent coverage of this report series, please see 13-R4-1184g in the 2013 issue.

Discusses rationale for SBA 504/certified development company (504/CDC) program, to encourage lenders to provide loans to certain small businesses that might otherwise be considered risky investments. Covers program borrower and lender eligibility standards, requirements, and statistics, including loan volume, loss rates, use of the proceeds, borrower satisfaction, and borrower demographics. Examines previous Congressional action taken to enhance small business access to capital, including temporary subsidization of 504/CDC program third-party participation fee and certified development company processing fee. Addresses issues raised concerning SBA management of the program, including oversight of 504/CDC lenders. Assesses Obama Administration proposals; P.L. 111-5, the American Recovery and Reinvestment Act of 2009; and P.L. 111-240, the Small Business Jobs Act of 2010, all to authorize changes to the 504/CDC program to enhance small business access to capital. Summarizes legislative activity in the 112th and 113th Congress.

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