The Partnership for Small Business Relief

Add your voice to the chorus of supporters urging Congress to enhance the Small Businesses Administration 504 Loan Program

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Support Legislation to Enhance SBA 504 & Reinstate FMLP

Small businesses across the country are continuing to struggle due to the pandemic, and Congress has an opportunity to provide business owners with immediate access to capital by making a few simple refinements to the SBA 504 Loan program. These small enhancements will accelerate economic recovery for small businesses in industries that have been most affected by the pandemic across the country.

Congress must enhance SBA 504 and reinstate FMLP to support lending to small businesses. In particular, FMLP will help accelerate economic recovery for the hospitality, healthcare, retail, daycare, restaurant and other industries hardest hit by Covid-19 shutdowns and provide access to capital for minority borrowers, independent businesses owners, and communities at ZERO cost to taxpayers.

The Partnership for Small Business Relief consists of SBA lenders, Certified Development Companies (CDCs) and small business borrowers, who believe that the SBA 504 Loan Program can play a significant role in stimulating the economy and further preserve jobs at extremely favorable terms for owners who operate from their own commercial properties.

Two Critical Provisions to Enhance 504

The Partnership believes that the small enhancements it seeks will provide $100 billion in funding to small businesses and is lobbying Congress for the following two provisions for the current SBA 504 Loan Program, at no additional cost to taxpayers.

Reinstate the FMLP Program

Reinstate the First Mortgage Loan Pool (FMLP) program, which provides an 80% government guarantee on SBA 504 first lien mortgages and will provide much-needed liquidity in the commercial lending marketplace

Expand SBA 504 Refinance

Expand the SBA 504 Refinance Program and allow greater flexibility for modifications of existing 504 loans

Who Benefits from These Provisions?

Small Businesses

Many small businesses have been hard hit by the recent economic shutdown particularly in the hospitality, food service, retail, healthcare and childcare industries.

To sustain and grow their businesses, these owners need to tap into their business equity and fund essential business operations.

The proposed enhancements to the SBA 504 program will provide small business owners the flexibility to refinance existing commercial mortgages (including CMBS) and tap additional equity in their properties to fund payroll and operating expense and to refinance business debt (particularly high cost, non-mortgage, debt).

Certified Development Companies (CDC)

The 230 not-for-profits that administer SBA 504 loans are essential economic engines for the local communities they serve.

The proposed enhancements to the SBA 504 program will improve the ability of CDCs to help small business owners, and an increase in loan volumes will allow CDCs to thrive and provide positive impact in their communities.

Small Business Lenders

Under current economic constraints resulting from Covid-19 and the shutdown, banks and non-bank lenders may not be able to originate new SBA 504 loans and may even be forced to reconsider pending loans. Furthermore, credit flows to the hotel, healthcare, daycare, and retail industries have collapsed.

FMLP specifically can provide incentive for lenders to resume lending activities and provide capital access to small businesses that have been most affected by Covid-19.

“Re-establishing FMLP is the quickest and most efficient way to support the proven success of the SBA 504 Loan Program and help U.S. small businesses thrive without burdening taxpayers. There is now almost 10 years of pay history on the original FMLP bonds showing very strong performance.”


Congress & U.S. Taxpayers

When enacting additional legislation to assist with Covid-19 recovery, Congress needs to consider programs that are both highly effective and at the same time do not burden the U.S. taxpayers with additional debt.

FMLP has an existing statutory playbook and is ready to implement immediately. In addition, FMLP bonds have a 10-year performance track record with very low default rates.

By expanding the 504 refinance program Congress can help existing business owners unlock cash equity in their commercial properties, and provide incentive to lenders to provide liquidity to stalled markets.

Both the FMLP program and SBA 504 Refinance are zero taxpayer subsidy programs.

More About SBA 504 Provisions & FMLP

July 3, 2020

Letter to Congress

June 30, 2020

FMLP Primer

July 20, 2020

Interview about FMLP

Send a Message to Congress that You SUPPORT SBA 504 and FMLP!

Your vocal support is critical. Urge Congress to enhance SBA 504 and reinstate FMLP as part of the next stimulus legislation.

Join Us Today!