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House Passes HR 10375 504 Modernization Act To Help Small Manufacturers
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Key points
- The U.S. House passed H.R. 10375 to modernize the SBA 504 loan program for small manufacturers.
- The bill lowers building occupancy requirements and allows lenders to streamline loan closings.
- The legislation passed by voice vote and now moves to the Senate for consideration.
NewsWK — The U.S. House of Representatives recently passed new small business loan legislation. The measure expands critical financing options for regional industrial firms across the nation.
What does the HR 10375 504 Modernization Act mean for local business owners?
The 504 Modernization and Small Manufacturer Enhancement Act gives growing companies broader access to essential federal backing. Under the reform, business owners gain flexible rules to expand facilities and invest in localized hiring. Additionally, accredited lenders can correct paperwork and reallocate up to 10% of project costs without delaying loan closings.
How do updated SBA 504 loan manufacturing rules expand access?
First, the bill lowers occupancy requirements through the SBA 504 loan program. Small manufacturers must now occupy just 50% of a new building, down from 60%. Furthermore, companies renovating existing structures can lease out up to 66% of the space. Still, owners must occupy the property for 12 consecutive months before launching the project.
Also, the legislation establishes updated policy objectives for certified development company intermediaries:
- Workforce development through training programs lasting at least 12 weeks
- Revitalization support for designated federal disaster areas
- Clarification that credit elsewhere rules do not apply to intermediaries
How did this SBA 504 loan program bill move through Congress?
Representative Nydia Velázquez introduced the HR 10375 504 Modernization Act on September 14, 2026. The legislation amends the Small Business Investment Act of 1958. House Committee on Small Business Chairman Roger Williams cosponsored the measure with Representative Derek Tran and Representative Gilbert Ray Cisneros, Jr. Then, the committee cleared the proposal later that month.
Following 40 minutes of floor debate, representatives approved the legislation by voice vote on November 11, 2026. The bill was one of seven bipartisan small-business measures approved that day. Consequently, the proposal now awaits action in the U.S. Senate.
This article was produced with the assistance of AI and reviewed by our editorial team.
Sources
Related: House Committee Advances the 504 Modernization and Small Manufacturer Enhancement Act
Related: Lawmakers Introduce 504 Program Level Flexibility Act to Guard Main Street Loans
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