Bill would let the Small Business Administration guarantee up to 15% more 504 loans in a year

The Administrator may make loan guarantee commitments of up to 115 percent of the yearly limit when commitments could otherwise go over that limit. It covers guarantees for loans authorized under section 503 of the Small Business Investment Act, made through state or local development companies. The Administrator must first decide that commitments could exceed the limit set by law. The authority applies to fiscal year 2027 and each year after.

The Administrator must notify certain congressional committees before using the extra authority, and may use it only once in a fiscal year. Notice goes to the Senate and House small business committees and the Appropriations subcommittees on financial services and general government. Notice is due at least 30 days before the Administrator plans to use the authority.