7(a) Program Risk Oversight Act
Sponsored By: Representative Velázquez, Nydia M. [D-NY-7]
Introduced
Summary
Strengthens public reporting of program risk for the SBA's 7(a) loan guarantee program. This bill would require the Office of Credit Risk Management to add detailed program-risk analyses to the Administrator's annual report so Congress and the public see finer-grained risk data.
Show full summary
- SBA reporting must break out program risk by six loan-size tiers from $50,000 to $5,000,000, by loan-age categories relative to the report date, and by borrower characteristics including loans to open a business and firms younger or older than two years.
- Risk and enforcement data must be reported separately for named lender types, including bank holding companies, insured credit unions, state credit unions insured by private deposit insurers, small business lending companies (including Community Advantage), and non‑federally regulated lenders.
- The report must add enforcement details and new delinquency metrics, including loans 31 to 59 days past due, fraud determinations, and civil monetary penalties for fraud, and the Director must post the report online within seven days of sending it to Congress. The bill also corrects the word "premise" to "premises."
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
SBA 7(a) loan reporting rules
If enacted, this would require the SBA to expand its annual report on the 7(a) loan guarantee program. The report would break out counts and dollar amounts by loan size tiers: $50,000 or less; $50,001–$250,000; $250,001–$350,000; $350,001–$500,000; $500,001–$1,000,000; and $1,000,001–$5,000,000. It would also break data out by loan age (originated less than 1 year, 1–2 years, and more than 2 years), by borrower type (used to open a business; business in operation 2 years or less at origination; business in operation more than 2 years), and by type of originating institution (bank holding companies; insured credit unions; State credit unions insured by a private deposit insurer; small business lending companies including Community Advantage lenders; and non‑Federally regulated lenders). The report would include counts and dollars for enforcement actions and civil monetary penalties tied to fraud, loans 31–59 days past due/deferred/delinquent, loans determined to be made fraudulently, and purchases/collections/charge‑offs on defaulted 7(a) loans, each shown by originating institution type. If enacted, the SBA Director would have to post the report on the SBA website no later than 7 days after sending it to Congress.
Sponsors & CoSponsors
Sponsor
Velázquez, Nydia M. [D-NY-7]
NY • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov