Overview

• Bill amends Section 502(3)(C) of the Small Business Investment Act of 1958 (15 U.S.C. 696)
• Removes restrictive eligibility criteria for SBA 504 loans used for plant acquisition, construction, conversion, or expansion
• Bipartisan bill with 5 cosponsors from both parties
• Placed on Union Calendar No. 354 on December 12, 2025

Who does this affect?

• Main groups: Small business owners seeking loans to buy property, build facilities, or expand operations; commercial lenders participating in SBA 504 loan program
• Who benefits: Small businesses gain easier access to government-backed financing for real estate and construction projects by meeting fewer eligibility requirements
• Teen impact score: 4/10 (indirect impact via family businesses and local job creation)
• Small business owners in families of teens may find it easier to expand, potentially creating entry-level jobs

What This Bill Does

• Strikes clauses (ii) and (iii) from Section 502(3)(C) of the Small Business Investment Act, removing two specific eligibility criteria for 504 loans
• Redesignates remaining clause (iv) as clause (ii), streamlining the statutory structure
• Updates cross-reference in Section 502(3)(B)(ii) to reflect the removal of clauses (ii) and (iii)
• Makes conforming amendment by changing reference from 'clauses (i), (ii), or (iii)' to 'clause (i)' only

Legislative Status

• Introduced October 14, 2025 by Rep. Williams (TX) and Rep. Simon
• Referred to House Committee on Small Business
• Committed to Committee of the Whole House on December 12, 2025 and ordered to be printed with Report No. 119-406

In short

• Bill removes two eligibility requirements from existing small business loan program for facility projects.
• Small businesses will have fewer hoops to jump through when applying for SBA 504 loans to buy or build property.
• Changes affect the 504 loan program, which provides long-term, fixed-rate financing for major assets.
• Bill has bipartisan support and has advanced to Committee of the Whole House.
• No new spending or programs created—just simplifies existing loan criteria.

Why should I care?

Small businesses are major employers in most communities, and many teens work their first jobs at local shops, restaurants, or family businesses. When small businesses can access loans more easily to expand or upgrade facilities, they often hire more workers—including teens seeking part-time or summer employment. This bill removes bureaucratic barriers that currently prevent some small businesses from getting government-backed loans for construction or expansion projects. While it doesn't directly affect teens, easier financing for local businesses can mean more job opportunities and stronger local economies where teens live and work.