504 Program Level Flexibility Act

HR 10245, the 504 Program Level Flexibility Act, allows the Small Business Administration (SBA) to temporarily exceed the annual loan guarantee limit for its 504 loan program by up to 15% (to 115% of the cap) for fiscal years 2025 and beyond, if needed to avoid hitting funding limits. This flexibility applies only when the SBA Administrator determines the current cap would be exceeded, requires 30 days' advance notice to specific congressional committees, and can be used just once per fiscal year. The bill directly affects the SBA's administrative process for managing the 504 program, which provides long-term financing for small business real estate and equipment purchases. It does not change eligibility for small businesses seeking 504 loans but gives the SBA a limited tool to maintain program operations within budget constraints.