504 Modernization and Small Manufacturer Enhancement Act of 2025

Workforce Development: The bill adds a goal to support workforce development through work-sited training programs of at least 12 weeks, which could help workers gain relevant skills (Section 2).

Business Diversity: The bill expands the focus on developing minority-owned, employee-owned, or women-owned businesses (Section 2).

Energy Efficiency: New policy goals are added to help small businesses reduce costs by using energy-efficient products or generating renewable energy (Section 2).

Disaster Recovery: The bill includes provisions to aid in the revitalization of areas hit by declared disasters (Section 2).

Support for Very Small Businesses: The bill expands the scope to include small business concerns with 10 or fewer employees (Section 2).

Increased Capital for Manufacturing: The bill increases the amount of certain loans from $5,500,000 to $10,000,000 (Section 3).

Easier Loan Closings: Accredited lender certified companies are given more flexibility to reallocate costs, correct names/addresses, and change third-party lenders to facilitate closing a loan (Section 4).

Lower Barriers for Manufacturers: Small manufacturers may benefit from reduced contribution requirements, a lack of requirement for additional collateral, and increased debenture amounts (Section 5).

Training and Assistance: The bill mandates that SBA district offices partner with resource partners to provide training to manufacturing businesses regarding the application and assistance process (Section 6).

Flexible Leasing for Manufacturers: Small manufacturers constructing new facilities can lease out up to 50 percent of the project, providing more flexibility than the standard 20 percent limit (Section 7).

Training Duration Requirements: To satisfy the workforce development goal, businesses must have a documented in-house program lasting at least 12 weeks or contract with an entity that provides 12 weeks of training (Section 2).

Leasing Restrictions for Existing Buildings: Businesses looking to lease out existing buildings face specific constraints, including a requirement to occupy the building for 12 months prior to applying and strict limits on lease terms—no more than 1 year for residential and 5 years for commercial (Section 7).

Increased Oversight for Certain Leases: Projects involving the leasing of more than 50 percent of an existing building require the development company to conduct annual or biennial examinations to ensure the business is not a real estate development business (Section 7).