Louisiana Capital

Congress Passes 504 Reauthorization

On November 6th the U.S. House of Representatives passed the Senate amendment to FY 2005 Omnibus Appropriations Act (HR 4818) that included the small business provisions that reauthorizes and strengthens the 504 Loan Program for two years.

Below are key provisions in the bill for the 504 Loan Program:

Increase in Program Reauthorization levels to:

$6 billion for FY 2005 $7.5 billion for FY 2006
$5 billion in lending authority for FY 2005
INCREASES THE MAXIMUM SIZE OF 504 LOANS TO:

$1.5M FOR REGULAR LOANS
$2M FOR PUBLIC POLICY LOANS
$4M FOR MANUFACTURING LOANS
Increases the job requirement test:

$50K of guarantee for every one job created in a regular or public policy projects
$100K of guarantee for every one job created in a small manufacturer projects
Provides permanent authorization of 504 program fees.