Four members of Pennsylvania’s Congressional delegation recently sent a letter to the U.S. House Small Business Committee expressing their support for the Certified Development Company 504 (CDC/504) Loan Guaranty Program.
According to the Small Business Administration (SBA), public-private partnerships facilitate the program and provide underfinanced small businesses opportunities to obtain financing on reasonable terms and conditions they otherwise might not. User fees primarily fund CDC/504 loans.
“Due to the COVID-19 pandemic, the demand for CDC/504 loans has skyrocketed,” the lawmakers said. “As per SBA data, in FY2021, the program disbursed 9,676 loans that totaled more than $8.2 billion in targeted assistance to Main Street businesses seeking access to working capital. Notably, over $240 million in funding was allocated to rural areas.”
The program supported more than 52,000 jobs in fiscal year 2021, the lawmakers said.
The lawmakers cautioned that the program’s popularity could mean it will reach its annual lending cap by mid-summer, which would result in months where businesses would be unable to access the capital they need.
U.S. Reps. Brian Fitzpatrick (R-PA), Fred Keller (R-PA), Guy Reschenthaler (R-PA), and Glenn ‘GT’ Thompson (R-PA) sent the letter to Committee Chairwoman Nydia Velázquez (D-NY) and U.S. Rep. Blaine Luetkemeyer (R-MO), committee ranking member.