504 Program Risk Oversight Act

Would require the SBA to run an annual risk analysis of the entire 504 loan portfolio and publish the results. It would make the Small Business Administration perform yearly portfolio risk analyses of all loans guaranteed under Title V and send a report to Congress by December 1, 2025 and annually thereafter. The report must show overall and industry risk and provide a consolidated, unnamed analysis for development companies responsible for at least 1 percent of gross approvals with dollar values and loan counts broken into four loan-size bands. It must also break risk into three origination-age cohorts, show risk by borrower operating age and for limited or special purpose properties, list steps taken to mitigate identified risks, and tally development companies, loans, and gross dollars. The report must include purchases of defaulted loans, recoveries, charge-offs, recommended enforcement actions and any civil penalties. The Administrator must post the report on the SBA website no later than seven days after submitting it to Congress.