504 Modernization and Small Manufacturer Enhancement Act of 2025

S. 2662 would amend the Small Business Investment Act of 1958 to improve the SBA's 504 loan guarantee program, which provides small businesses with long-term fixed-rate financing for major assets like land, equipment, and machinery. The bill would expand the program's policy goals to include workforce development, support for minority and employee-owned businesses, and energy efficiency initiatives. If enacted, the bill would increase the maximum loan amount for manufacturing loans from $5.5 million to $10 million, making it easier for small manufacturers to finance larger projects.

The bill would also streamline loan procedures for certified lender companies by allowing them to reallocate project costs, add guarantors, and correct loan details more flexibly. Additionally, it would introduce special provisions for small manufacturers, including reduced contribution requirements, less stringent collateral requirements, and more generous debt refinancing options. These changes would aim to reduce barriers for small manufacturers seeking to expand operations or purchase equipment. The bill is currently under consideration by the Senate Committee on Small Business and Entrepreneurship, which held hearings on it in September 2025.