March 15, 2022
SBA Hot Topic Tuesday – $11 Billion Allocated to the 504 Program in $1.5 Trillion Spending Bill
“Last night, the House took the critical step of passing appropriations legislation that represents a transformational investment in working families. As we continue to progress in our recovery from the pandemic, it’s vital that our government’s funding reflect the needs of the American people,” says the House Small Business Committee Chairwoman Nydia M. Velázquez last week. “This legislation also makes a substantial investment in our nation’s small businesses by allocating over $1 billion in funding to the Small Business Administration, $109 million above the FY21 enacted level.”
Congress passed the $1.5 trillion Omnibus Appropriations Funding Package last week, and President Biden signed the bill on the afternoon of March 15, 2022. The SBA programs’ spending caps are outlined in the nearly 3,000-page long omnibus.
•The SBA 7(a) program has a $30 billion allocation for the entirety of fiscal year 2022, which includes the $9.1 billion already approved in the 7(a) program.
•The SBA 504 program has an authorization level of $11 billion for FY22. There is nearly $5 billion in approved 504 loans as of March 11, 2022, but we expect that the 504 program will not reach this lending cap before September 30, 2022.
•The 504 debt refinance without expansion program will have an authorization level of $4 billion.
“As small businesses continue to recover from COVID, we must ensure they have access to the capital needed to grow. I worked to ensure this omnibus provides ample funding to SBA loan programs that help entrepreneurs start and grow their businesses,” says Nydia Velázquez. “Small businesses are the backbone of the American economy and leading the way in our recovery. This package will help ensure they have the resources needed to continue to push us forward.”