Revising the Rule on Affiliation. Revising this rule will open access to SBA loans to businesses that, under current rules, would not qualify as a small business under SBA's size standards by virtue of their association with other companies. It also would streamline 504 loan applications and reduce paperwork requirements for 504 and 7(a) loan applications.

Eliminating the Nine-Month Rule for the 504 Loan Program. Eliminating the rule removes a restriction that limits a business to include in its 504 project only expenses incurred nine months prior to submitting the loan application. The new rule would allow inclusion of expenses incurred at any time, including projects put on hold for more than nine months due to a natural disaster.

Increasing Accountability. Refocusing CDC corporate governance requirements will reinforce the importance of certified development companies' board of director accountability for CDC oversight for the 504 loan program and set in place measures to strengthen oversight in order to maintain program integrity.

The SBA said it proposed the new measures after extensive consultations with lenders and borrowers to identify the greatest challenges they face and find ways to reduce barriers to making and accessing loans, while still maintaining strict oversight.

The SBA has provided additional information on the proposed rules.