WASHINGTON, D.C., Sept. 24, 2025 – The United States House Small Business Committee held a hearing this week titled, “Pathway to Capital: The Role of SBA Lending in Supporting Main Street America.” The Automotive Service Association (ASA) – the only national trade association devoted exclusively to the interests of collision and mechanical automotive repair shops – supports several policy proposals discussed during the hearing that would make it easier for small independent automotive repair businesses to obtain loans backed by the U.S. Small Business Administration (SBA). Namely, ASA supports eliminating the higher downpayments required by some SBA loans for businesses classified as “special purpose properties.” ASA also supports increasing the maximum loan amount some SBA programs allow from $5 million to $10 million.

During the hearing, committee Chairman Roger Williams (R-TX) asked the hearing’s witness – Thomas Kimsey, Associate SBA Administrator for the Office of Capital Access – if he believes the 20 percent downpayment requirement for “special purpose properties” for the SBA’s 504 Loan Program should be revised or eliminated. Almost all auto repair businesses meet the definition of a special purpose property. Businesses that don’t fall under that category only need to contribute 15 percent of the capital upfront. However, as Chairman Williams noted, special purpose properties, “pose no greater risk to default when compared to general 504 loans.” ASA respectfully urges the SBA to adopt fair policies that treat auto repair shops equally to most other businesses.

Additionally, ASA echoes the support expressed by Congressman Derek Tran (D-CA) for H.R. 1893 and H.R. 4513. These identical bills (including S. 901 in the U.S. Senate), which are backed by members of both parties, would raise the maximum loan a small business could receive under the SBA’s 7(a) Loan Program. Currently, these borrowers cannot receive more than $5 million in credit. The last increase to that limit occurred in 2010. ASA strongly supports these bills.

Dan Stander, ASA Board of Directors Chairman, noted that, “the costs of operating an auto repair business and investing in its long-term viability are becoming increasingly more expensive. A higher allowable loan would allow more small independent auto repair shops to thrive. We appreciate Representatives Alford (R-MO), Thanedar (D-MI), and Wied (R-WI) and Senators Tillis (R-NC) and Fetterman (D-PA) for introducing these important pieces of legislation. ASA isn’t asking the SBA for special privileges. We just want small auto repair businesses to be treated the same as most other small businesses. That’s why we call on the SBA to allow repairers participating in the 504 Loan Program to contribute at least 15 percent upfront instead of the current 20 percent requirement.”

ASA is the largest and oldest national organization committed to protecting the automotive repair industry with ONE VOICE. We are the only trade association whose board is comprised solely by collision and mechanical automotive repairers. Our members own and operate repair facilities responsible for the majority of all, post warranty, repair services in the United States. ASA advocates for the interests of its members and their customers in Washington, D.C. The education, resources, and services ASA provides empowers its members in all 50 states to remain trusted stewards of mobility in their communities. www.ASAShop.org