# 119-s-2662: 504 Modernization and Small Manufacturer Enhancement Act of 2025

119-s-2662, 504 Modernization and Small Manufacturer Enhancement Act of 2025, is a 119th Congress bill sponsored by Sen. Klobuchar, Amy [D-MN] (D-MN); status in_committee; PRIA reads it as touching household money (as of 2026-09-10).

- Canonical: https://policyrisk.com/legislation/119-s-2662
- As of: 2026-09-10
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2662
- Congress: 119
- Title: 504 Modernization and Small Manufacturer Enhancement Act of 2025
- Status: in_committee
- Introduced: 2025-08-01
- Sponsor: Sen. Klobuchar, Amy [D-MN] (D-MN)
- Cosponsors: 1
- Policy area: Commerce
- Touches household money: yes
- Last recorded action: 2026-09-10

## Summary

**Boost capital access for small manufacturers.** This bill would modernize the Small Business Administration 504 loan program to raise manufacturing loan caps, add workforce and energy goals, and tighten leasing rules and oversight to keep loans focused on operating businesses. - Small manufacturers: Raises the manufacturing 504 loan cap from $5.5 million to $10.0 million, sets graduated equity rules (generally 5% and 10% in some cases), allows up to 100% financing for expansion refinancing, and limits guaranteed debenture support to 50% of project cost. - Certified development companies and lenders: Expands closing flexibility for accredited certified development companies to correct and reallocate items including up to 10% of project costs, and adds monitoring requirements, annual exams for five years then biennial reviews, and anti-investor certifications. - Workers and communities: Adds a 12-week training requirement or contracted trained-applicant pathway for workforce development, requires each SBA district to partner with at least one resource partner for manufacturer training, and broadens program goals to encourage minority, employee, and women ownership plus energy efficiency and disaster-area revitalization.

## Cosponsors (1)

- Sen. Young, Todd [R-IN] (R-IN), 2025-08-01T00:00:00.000Z

## Provisions PRIA read

- Bigger 504 loans for manufacturers: benefit, high. If enacted, the 504 loan cap for manufacturing projects would increase to $10,000,000. If enacted, qualifying small manufacturers could refinance expansion costs up to 100 percent of the expansion project. If enacted, lenders could not require extra collateral for qualifying small manufacturers. Th…
- Training and workforce rules for manufacturers: benefit, medium. If enacted, the 504 program would add goals like helping minority, employee, and women-owned firms, energy efficiency, disaster area recovery, and very small businesses (10 or fewer workers). If enacted, projects would need a workforce development plan: either an in-house training program of at lea…
- New borrower equity and caps: cost, medium. If enacted, any guaranteed debenture for a qualifying small manufacturer could not exceed 50 percent of the project's cost. If enacted, small manufacturers would generally need to contribute at least 5 percent of project cost as equity. If the business is under 2 years old and the project is a limi…
- New leasing limits and oversight: cost, medium. If enacted, new 504 rules would limit permanent leasing in assisted projects. If enacted, new construction projects could permanently lease up to 20% only if the borrower occupies at least 60% at closing and meets 3- and 10-year occupancy plans. If enacted, existing buildings may permanently lease…
- Closing review and lender closing powers: mixed, low. If enacted, certified development companies would get new closing powers, such as reallocating up to 10% of project costs, fixing names and addresses, adding eligible passive or operating companies, changing interim lenders in limited cases, converting guarantors and co-borrowers, and allowing a de…

## Related bills

- 119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026
- 119-s-1541: SHIPS for America Act of 2025
- 119-s-5071: Children's Safe Welcome Act of 2026
- 119-s-2838: Protecting Our Democracy Act
- 119-s-1748: Kids Online Safety Act
- 119-s-873: Fighter Force Preservation and Recapitalization Act of 2025

## Sources
- [119-s-2662 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2662)

## Related
- [119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026](https://policyrisk.com/legislation/119-s-3923)
- [119-s-1541: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-s-1541)
- [119-s-5071: Children's Safe Welcome Act of 2026](https://policyrisk.com/legislation/119-s-5071)
- [119-s-2838: Protecting Our Democracy Act](https://policyrisk.com/legislation/119-s-2838)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-873: Fighter Force Preservation and Recapitalization Act of 2025](https://policyrisk.com/legislation/119-s-873)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2662 (as of 2026-09-10).