Bill > HR6328

This bill establishes a pilot program called the "505 Pilot Program" through the Small Business Administration (SBA) to provide loans to state development companies for constructing and managing build-to-rent multifamily housing. The program will run for five years and allocate increasing amounts of funding from $1 billion in fiscal year 2026 to $3 billion annually from 2028 to 2030. Eligible "covered persons" (small businesses) can receive loans to construct, refurbish, expand, or improve build-to-rent housing, with the requirement that each project must create at least one additional dwelling unit. The bill specifically exempts participants from typical job creation and leasing restrictions, and lenders must conduct due diligence to ensure the borrower has a proven track record and adequate assets. Importantly, businesses participating in the program will not be considered speculative or passive businesses, which could traditionally limit their loan eligibility. Build-to-rent multifamily housing is defined as residential property constructed specifically for rental purposes, and the program aims to support small businesses in developing housing solutions that can help address housing availability and affordability challenges.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/6328/all-info