SBA 504 Reform Improves Financing Access for Attractions

We want to share an important federal policy update that could reduce upfront costs for certain SBA 504 “special purpose” properties.

The U.S. House of Representatives has passed the bipartisan Main Street Parity Act (H.R. 5763), which removes the long-standing requirement for higher borrower down payments on “special purpose” properties financed through the SBA 504 program.

Under current law, businesses financing properties such as hotels, lodging facilities, entertainment venues, healthcare facilities, and other specialized properties must contribute an additional 5 percent equity contribution beyond the standard SBA 504 requirement. This legislation eliminates that requirement, placing special purpose properties on equal footing with other 504-eligible projects.

If enacted, the bill would lower upfront capital requirements, improve access to SBA 504 financing, and free up capital for business investment and growth.

The legislation has now moved to the U.S. Senate for consideration. We are actively monitoring progress and advocating for final passage. We will share additional updates as the bill advances.