504 Program Risk Oversight Act
Sponsored By: Representative Tran, Derek [D-CA-45]
Passed House
Summary
Creates an annual portfolio risk analysis and public reporting requirement for the SBA 504 loan program. It would require the SBA Administrator to produce a report by December 1, 2025 and every year after that that summarizes program risk and steps to mitigate it.
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- Development companies: For any development company responsible for at least 1% of gross loan approvals the report must show the number and dollar value of loans and analyze risk in four loan-size bands: up to $500,000, more than $500,000 to $1 million, more than $1 million to $2 million, and more than $2 million to $5.5 million.
- Congress and the public: The SBA must deliver the first report by December 1, 2025 and then annually, and post each report on the SBA website within seven days of submission.
- SBA oversight and enforcement: Reports must include overall and industry risk, loan counts and gross dollars, the number and dollar amount of purchases of defaulted guaranteed loans, collections recovered, charge-offs, recommended enforcement actions, and any civil monetary penalties.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Annual risk reports for SBA 504 loans
This bill would require the Small Business Administration to run a yearly risk check of all SBA 504 guaranteed loans. The first report would be due to Congress by December 1, 2025, and then every year, covering the prior fiscal year. The SBA would post each report online within 7 days. The report would show overall risk and risk by industry, loan age (under 1 year, 1 to 2 years, over 2 years), and loan size bands (up to $500,000; $500,001 to $1,000,000; $1,000,001 to $2,000,000; $2,000,001 to $5,500,000). It would include borrower types, like loans to open a business and firms in operation 2 years or less or more than 2 years, plus a non-identifying summary for development companies with at least 1% of approvals. It would also list steps to reduce risk, and counts and dollars for default purchases, recoveries, charge-offs, enforcement actions, and penalties. “Limited or special purpose property” would use the SBA’s SOP 50 10 8 definition as of June 1, 2025.
Sponsors & CoSponsors
Sponsor
Tran, Derek [D-CA-45]
CA • D
Cosponsors
Rep. Patronis, Jimmy [R-FL-1]
FL • R
Sponsored 10/17/2025
Cisneros
CA • D
Sponsored 11/17/2025
Rep. Goodlander, Maggie [D-NH-2]
NH • D
Sponsored 11/17/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov