February 10, 2021
C-Suite Wednesday – NADCO’s Recommendations for the New Administration’s First 100 days
On January 25, 2021, the National Association of Development Companies (NADCO) released a white paper listing the trade organization’s top priorities and recommendations for the Biden-Harris Administration’s first 100 days.
In the white paper, NADCO encourages the new Administration to empower CDCs to participate in coronavirus relief efforts, increase investment to underserved communities through the SBA’s Community Advantage Loan Program, incentivize investments in certain industries to build a more resilient economy, and create greater efficiency in small business lending.
Specifically, NADCO made the following recommendations:
- Expand immediate small business relief efforts under the CARES Act.
- Enhance SBA 504 debt refinancing programs by removing certain eligibility restrictions.
- Grant express lending authority to CDCs making loans of $500,000 or less.
- Implement loan scoring models in approving 504 loans up to $350,000.
- Relax restrictions on CDC contracting.
- Call on Congress to authorize additional funds for SBA staffing.
Increase Investment in Underserved Communities
- Classify CDCs as “Community Financial Institutions” for PPP set-asides.
- Grant CDCs permanent access to the Federal Reserve discount window.
- Utilize the 504 Loan Program to get capital to underserved businesses.
- Codify the Community Advantage Loan Program as a permanent program.
- Establish an inter-agency working group to advance racial equity.
Combat Climate Change and Build a 21st Century Resilient Economy
- Increase the maximum loan size for small manufacturers to $6.5 million.
- Remove the $16.5 million cap on 504 loans to businesses promoting renewable energy.
- Create new 504 Loan Program public policy goals to increase access to capital to certain businesses.
Strengthen Small Business Lending Capacity for CDCs
- Streamline the 504 loan closing process.
- Increase investment in CDC and 504 modernization.
Click here to read NADCO’s full white paper.