On Tuesday, December 10th, the House Small Business Committee on Investigations, Oversight and Regulations held a hearing on the SBA 504 Loan program. SomerCor is an SBA certified development company (CDC), fulfilling the agency mission of providing access to capital to small businesses. You can view the full hearing and witness testimony here.

The witness panel included four CDC’s, who testified on behalf of the National Association of Development Companies (NADCO). The hearing was an opportunity for members of Congress to hear first hand from fellow 504 experts on the value of the program. The witnesses also highlighted several areas for improvement including:

  • Streamlining the closing process
  • Reducing the occupancy requirements to reflect real estate realities in urban areas
  • Changing restrictions for operating company(OC)/eligible passive company(EP) structured businesses
  • Adjusting the Small Business Ownership / Management Control percentage  threshold to qualify for public policy goals for SBA 504 Loan Program from 51% to 50%
  • Removing the government program exclusion from the 504 refinancing option

SomerCor is proud to be a part of one of the most successful public-private partnership programs in operation today. Congress recognizes the 504 program track record in creating jobs, sustainable economic growth and developing communities. We look forward to work further with our partners at NADCO and key congressional leaders to ensure the continued success of this program for years to come.

The SBA 504 loan program assists America’s small businesses for the acquisition of commercial real estate and heavy machinery/equipment, as well as refinancing certain qualifying fixed-asset debt. SomerCor helps you obtain the SBA 504 loan, which provides long-term, fixed-rate financing or refinancing for up to $5.5 million of your overall loan, no matter the scope of the project. Click here to learn more about this program.