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The SBA 504 Experts Urgently Need YOUR Help to Pass Much-Needed Legislation…
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I’m traveling to Connecticut today on business, so I had to compose this message between flights, in airports and on planes. I’ve frustrated a few flight attendants because I just HAD to finish a thought before shutting off my laptop for takeoff. I would have posted this sooner, but I wasn’t lucky enough to get a plane with in-flight wi-fi.

Anyway, there’s an EXTREMELY important bill being debated in the Senate today, and we need your help in getting it passed. It’s HR 5297, and it has important provisions that will benefit small businesses that use SBA loan programs (primarily the SBA 504 loan). As with all legislation, there are a lot of items in this bill, and sometimes you just have to take the good with the bad.

As far as I’m concerned, the most important benefit in HR 5297 is that it will enable borrowers to use the SBA 504 loan program for refinancing of existing qualified business debt. I’ve been advocating this since 2004 and I’ve written about it multiple times on this blog (here, here and here, for instance) because it’s the surest and easiest way to get capital in the hands of business owners. I’m just glad someone on Capitol Hill has finally heard my pleas (at least I’d like to think they have).

Now, the parts of this legislation that affect us are in no way like the bailout or TARP-type funds. Our program, the SBA 504 loan (aka The SmartChoice Commercial Loan) is one of the most effective (read: profitable) government loan programs around. It operates as a zero-subsidy program, and has even run a surplus which the government has used to help fund other less-profitable programs. In my opinion, creating legislation that makes this type of lending (efficient, profitable, and zero-subsidy) more available to deserving business owners is exactly the type of action we need from Congress.

Of course, this bill becoming law won’t address every problem faced by owners of small and mid-sized businesses. We still need to go further. But I see this (and I think you’ll probably agree with me) as the first true action by Congress toward helping the small business community since less than 1% of the ARRA monies were directed to this vital part of our economy. I say it’s about time they do something for Small Business instead of Big Business.

So now that you know WHAT bill HR 5297 is all about, here’s HOW you can help:

My humble request is for you to please call the Washington office of your Senator today and urge them to pass this bill. They’ll debate long into this evening, so just make sure you do it before you leave the office today. Just tell them who you are, that you support HR 5297, and (for extra brownie points) why they need to vote in support of it. Basically, if they want to improve “access to capital” (and they ought to), this bill is the way to do it.

You’ll find the Senate directory here.

The second very important thing you can do is to forward this to anyone and everyone you know who might care about the passage of bill HR 5297. We need all the support we can get, and I and everyone at Mercantile very much appreciate it.

If you have any questions or comments about this bill or anything else regarding the SBA 504 loan program, please leave a comment below. I’ll do my best to answer any questions as soon as possible.

Dedicated to Your Continued Success,


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  1. Elizabeth Stevens says:

    Fortunately the 2 Washington State senators were co-sponsors of the amendment to add the SBA related items to the Small Business Lending bill. So we’re covered for support here. I’ve been watching Senate coverage all day. Wish they’d get to voting!

  2. Russell Davis says:

    Hi Chris,

    I was glad to make the call for I am truly aware of just how hard small business owners are having in obtaining capital.

    Russell Davis, President
    Southern Commercial Corp
    4106 S Wappel Dr
    Columbia, MO., 65203

  3. RON JOHNSON says:

    Give em Hell Chris.

  4. Ira says:

    Thanks for the heads up. I just e-mailed to our senators. I have excellent credit and always on time…If I could recast my debt, I could cut my finance costs dramatically and put my dollars in to growing my business.
    Pleas advise me if this bill comes through.


  5. Vicky Shelton says:

    Hello Chris:

    Thank you for the heads up. Knock theirs socks off! More power to you. I am one small business owner that have struggled for the past 3-4 years. And without private investors, I would still be kissing ass in corporate America. I ventured out on my own back in 2006, and I was very happy about the decision up until I found out that banking on “The Old System” to work, that’s when creditors and lenders and governments used to care about the future of small business owners, and their business ventures, but I came to realize I was dead wrong believing in the old system (or the way it used to be). I came to realized that they (i.e., creditors, lenders, and bureaucrats) are all out for themselves. They pay no mind to the little people like me. I’m originally from the Philippines, female, over 40, and have been a law abiding citizen for more than three decades and I tell you there is not one program that can help me out there – so I am told over and over again. However, they advertise all these breaks for minorities, females, and the likes of these things, but in reality it’s all for them. Talk about selfish politicians and bureaucrats ~ hate to write this one, bud ~ but Congress is sure full of them.

  6. Aaron M. Bernstein says:

    I support the amendment to add the SBA related items to the Small Business Lending bill.

  7. NAZIR KARMALI says:

    hello this is a very important bill Chris i did my
    part.Everybody should support this cause i just emailed my senators with gusto please kindly let me know what happens to this bill,thanks nazir

  8. Michael Kieke says:



  9. Michael Kieke says:


    Thanks for the head up

  10. Romer Reyes says:

    Glad to support this Bill Chris, just called my Senator and said… I as a small Business owner support this Bill HR 5297.
    Thank You.

  11. Tim says:

    Thanks Chris.

  12. Chris Hurn says:

    Leo – I don’t know of any online sites. Sorry. And yes, theoretically you could buy an SBA foreclosure and put your business operations into that commercial property. You’d only get financing on the new purchase price, not any “embedded equity” you may have gotten by getting a “good deal.” Hope that helps some.

  13. Loretta Mathushek says:


  14. Jay Yurkiewicz says:

    Chris, thanks for the info. I’ll definitely call them. And Thanks for taking such a proactive action of mobilizing people like myself to act on this important issue. I really appreciate it!

  15. Art McCarty says:

    I am a small business owner and have left a voice mail message. Like many small business owners, obtaining capital for expansion has been difficult and this administration seems to want to give everyone special programs, money, and support except for the small business owner. Hopefully this nightmarish administration will end very soon and fellow republicans take back the government.

  16. Brent Sapp says:

    I made the call – it does take only 15 seconds and now is the time to call!

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