HR 1804
7(a) Loan Agent Oversight Act
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Bill overview
This bill requires the Small Business Administration (SBA) to create and submit an annual report detailing the activities of 7(a) loan agents. The report will include information on the number of agents assisting applicants, the number of fraudulent loans linked to these agents, the purchase rate of loans facilitated by agents, and the fees paid to agents. It will also analyze the risk associated with agents responsible for a significant portion of loan volume and describe how the SBA communicates with these agents.
Key provisions
- The SBA must submit an annual report to Congress.
- The report will detail the number of 7(a) agents assisting applicants.
- The report will track the number of fraudulent loans linked to 7(a) agents.
- The report will include the purchase rate of loans facilitated by agents.
- The report will outline the referral fees paid to 7(a) agents.
- The report will analyze the risk associated with agents responsible for a significant portion of loan volume.
- The report will describe how the SBA communicates with 7(a) agents.
Who is affected
- Small Business Administration (SBA)
- Small business borrowers
- 7(a) loan agents
- Lenders participating in the 7(a) program
- Congress
Notable changes
- Requires the SBA to collect and report data on 7(a) loan agents.
- Specifies the data to be included in the annual report, including fraud rates and referral fees.
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119th CONGRESS — 1st Session
H. R. 1804
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Small Business Act to require a report on 7(a) agents, and for other purposes.
This Act may be cited as the 7(a) Loan Agent Oversight Act
.
Section 47 of the Small Business Act (15 U.S.C. 657t) is amended by adding at the end the following new subsection:
The Director shall submit to Congress, in addition to the report required under subsection (h)(2), an annual report including, for the calendar year covered by the report—
the number and aggregate dollar value of referral fees paid to 7(a) agents, disaggregated by whether the applicant or 7(a) lender paid such fees;
the dollar value of loans made with the assistance of 7(a) agents; and
the number of loans made with the assistance of 7(a) agents;
a description of how the Administrator communicates with 7(a) agents.
assistance with completing an application for a loan under section 7(a) (including preparing a business plan, cash flow projections, financial statements, and related documents); or