February 17, 2022

The Honorable Nydia Velázquez

Chairwoman
House Committee on Small Business
2361 Rayburn House Office Building
Washington, DC 20515

The Honorable Blaine Luetkemeyer

Ranking Member
House Committee on Small Business
2069 Rayburn House Office Building
Washington, DC 20515

Dear Chairwoman Velázquez and Ranking Member Luetkemeyer,

We write to you today to offer strong support for the Certified Development Company
504 (CDC/504) Loan Guaranty Program, a highly effective economic development financing
tool for small businesses. The program is facilitated through private-public partnerships and
provides opportunities to small businesses that, according to the Small Business Administration
(SBA), “might not otherwise obtain financing on reasonable terms and conditions.” In Fiscal
Year 2021 alone, CDC/504 loans supported 52,701 jobs. We consistently hear from constituents
who have benefitted from the program and remain committed to its continued success.

Due to the COVID-19 pandemic, the demand for CDC/504 loans has skyrocketed. 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. For the first time since its enactment, the
program reached its authorized lending cap and subsequently ceased acceptance of CDC/504
loan applications on September 7, 2021, cutting off qualifying businesses’ ability to utilize the
program for the duration of several weeks.
 In the first few months of FY2022, the program is on pace to hit its lending cap once
again. Four months into the fiscal year, the program has already disbursed over 41.4 percent of
its allowable funds. At this rate, the loan cap will be met by mid-summer, resulting in a
monthslong period where job creators are unable to access the essential capital they need in order
grow their businesses.

The CDC/504 provides financial opportunities not only to small businesses, but also to
the workers and communities they support. We urge you to consider these specific challenges as
Congress works to provide resources for this essential program.

Sincerely,

______________________________ ______________________________
Fred Keller Brian Fitzpatrick
Member of Congress Member of Congress

______________________________ ______________________________
Glenn “GT” Thompson Guy Reschenthaler
Member of Congress Member of Congress

cc: The Honorable Rosa DeLauro, Chair

House Committee on Appropriations

The Honorable Kay Granger, Ranking Member

House Committee on Appropriations

The Honorable Mike Quigley, Chairman

Subcommittee on Financial Services and General Government

The Honorable Steve Womack, Ranking Member

Subcommittee on Financial Services and General Government