H.R. 10352 — 504 Program Level Flexibility Act
Executive Summary
H.R. 10352, the '504 Program Level Flexibility Act,' grants the Small Business Administration (SBA) Administrator the authority to unilaterally increase the cap on 504 loan program commitments by up to 15% (to 115% of the limit) starting in FY 2027. This addresses situations where high demand for SBA 504 loans threatens to exhaust authorized funding levels before the end of the fiscal year, preventing sudden halts in small business lending. The bill requires a 30-day congressional notification before use and limits the exercise of this authority to once per fiscal year.
Arguments For
- Argument 1: Prevents abrupt shutdowns of the popular SBA 504 loan program during periods of high economic demand, ensuring continuous access to capital for small businesses.
- Argument 2: Provides a flexible, bureaucratic safety valve that avoids the need for emergency congressional action in gridlocked environments, protecting local economic development projects.
Likely Supporters
Arguments Against
- Argument 1: Cedes congressional 'power of the purse' by allowing an executive branch agency to unilaterally increase its own lending caps without a direct vote.
- Argument 2: Could lead to normalized over-leveraging of the program, increasing taxpayer exposure to loan defaults if the SBA consistently relies on the 115% buffer.
Likely Opponents
📋 Key Provisions
- Authorizes the SBA Administrator to increase the 504 loan program commitment limit up to 115% of the statutory or appropriated limit starting in FY 2027.
- Mandates a 30-day advance notice to House and Senate Small Business and Appropriations committees before exercising the authority.
- Restricts the use of this cap-increase authority to a maximum of once per fiscal year.
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Verification Guide
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Allows the Administrator to increase the commitment limit up to 115%.
"equal to not more than 115 percent"
Requires a 30-day notice before the authority is exercised.
"Not later than 30 days before"
The authority can only be used once per fiscal year.
"than once during any fiscal year"