504 Program Level Flexibility Act
Sponsored By: Representative Simon, Lateefah [D-CA-12]
In Committee
Summary
Would let the SBA temporarily raise the Section 503 (504 program) aggregate commitment cap to up to 115% when demand would otherwise exceed the normal limit. It creates a one-time-per-fiscal-year option starting in fiscal year 2027 for the Administrator to increase commitments, subject to advance notice to key congressional committees.
Show full summary
- Small businesses. More 504 loan capacity could be available in years when demand would exceed the usual cap, making financing easier for some growing firms.
- State and local development companies. Qualified state or local development companies would be able to receive aggregate commitments up to 115% of the applicable limit, so they can back more guaranteed loans in a covered fiscal year.
- SBA and congressional oversight. The Administrator would need to notify the Senate and House small business committees and the Appropriations subcommittees on Financial Services and General Government at least 30 days before using the authority and could use it only once per fiscal year.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More capacity for SBA 504 loans
If enacted, the SBA Administrator would be able to raise the yearly cap on guaranteed SBA 504 loan commitments up to 115 percent of the applicable legal limit. This authority would begin in fiscal year 2027 and would apply in each fiscal year after. The Administrator would have to give at least 30 days' notice to the House and Senate Small Business and relevant Appropriations subcommittees before using it. The Administrator would be able to use this power no more than once in any fiscal year. This change would not create new appropriations; it would only let the SBA temporarily exceed the existing commitment cap when needed.
Sponsors & CoSponsors
Sponsor
Simon, Lateefah [D-CA-12]
CA • D
Cosponsors
Rep. Alford, Mark [R-MO-4]
MO • R
Sponsored 9/14/2026
Rep. Cisneros, Gilbert Ray [D-CA-31]
CA • D
Sponsored 9/16/2026
Roll Call Votes
No roll call votes available for this bill.
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