# 119-hr-10375: 504 Modernization and Small Manufacturer Enhancement Act of 2026

119-hr-10375, 504 Modernization and Small Manufacturer Enhancement Act of 2026, is a 119th Congress bill sponsored by Rep. Velázquez, Nydia M. [D-NY-7] (D-NY); status in_committee; PRIA reads it as touching household money (as of 2026-10-22).

- Canonical: https://policyrisk.com/legislation/119-hr-10375
- As of: 2026-10-22
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-10375
- Congress: 119
- Title: 504 Modernization and Small Manufacturer Enhancement Act of 2026
- Status: in_committee
- Introduced: 2026-09-14
- Sponsor: Rep. Velázquez, Nydia M. [D-NY-7] (D-NY)
- Cosponsors: 3
- Policy area: Commerce
- Touches household money: yes
- Last recorded action: 2026-10-22

## Summary

**This bill modernizes the SBA 504 small‑business lending program to speed closings, tighten leasing rules, expand outreach, and link loans to training.** **Broaden access to affordable capital for small manufacturers while requiring workforce training and stronger closing oversight.** - Small manufacturers and small businesses get easier access to 504 financing through a new exemption from the "credit elsewhere" test and added closing flexibilities, including the ability to reallocate up to 10% of project costs. - Workers and employers must show workforce development is part of eligible projects by providing at least 12 weeks of in‑house training or a contract to supply applicants who completed 12 weeks of training. - Certified development companies, accredited lenders, and SBA legal staff face new closing rules and oversight. The bill creates "designated attorneys" with training and malpractice insurance rules and shifts some file reviews to the SBA Office of Credit Risk Management. The bill also requires the SBA to start a marketing and outreach plan within one year and sets new leasing limits for financed facilities, including a 20% cap on leasing of new facilities with occupancy tests and tighter rules for existing buildings.

## Cosponsors (3)

- Rep. Williams, Roger [R-TX-25] (R-TX), 2026-09-14T00:00:00.000Z
- Rep. Tran, Derek [D-CA-45] (D-CA), 2026-09-16T00:00:00.000Z
- Rep. Cisneros, Gilbert Ray [D-CA-31] (D-CA), 2026-09-16T00:00:00.000Z

## Provisions PRIA read

- Faster access to 504 loans: benefit, medium. If enacted, the bill would make it easier and faster to close many 504 loans. Accredited lender certified companies could reallocate up to 10 percent of project costs, fix names or addresses, add eligible passive companies, and change guarantor or borrower roles at closing. The bill would let desig…
- New leasing rules for 504 properties: mixed, medium. If enacted, the bill would change how much space a business can lease in a 504-financed property. For existing buildings, a borrower could generally lease up to 50 percent of the property. A borrower could lease up to 66 percent only after meeting extra rules, including at least 12 months of prior…
- Workforce training and disaster priority: mixed, medium. If enacted, the bill would add workforce development and disaster-area revitalization as formal goals of the 504 program. Covered projects would need either an in-house training program of at least 12 weeks or a contract that supplies applicants who completed at least 12 weeks of relevant training.…

## Related bills

- 119-hr-9877: Health Equity and Accountability Act of 2026
- 119-hr-6644: 21st Century ROAD to Housing Act
- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7973: Momnibus Act
- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act

## Sources
- [119-hr-10375 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/10375)

## Related
- [119-hr-9877: Health Equity and Accountability Act of 2026](https://policyrisk.com/legislation/119-hr-9877)
- [119-hr-6644: 21st Century ROAD to Housing Act](https://policyrisk.com/legislation/119-hr-6644)
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-10375 (as of 2026-10-22).