Bill > S2659

This bill enhances the oversight and management of certified development companies (CDCs) in the Small Business Administration's 504 loan program by establishing new responsibilities for the Office of Credit Risk Management. The bill introduces comprehensive provisions for the office to supervise CDCs, including conducting random file reviews of loan closings, preparing written reports within 60 days of review, and having the authority to require corrections of potential deficiencies. The office will also have both informal and formal enforcement powers, allowing it to take action against CDCs that violate statutory, regulatory, or procedural requirements, with potential penalties up to $250,000. Additionally, the bill mandates an annual portfolio risk analysis of 504 loans, requiring a detailed report to Congress that includes program risk assessments, industry concentration analysis, and information about enforcement actions. The legislation also introduces a fee mechanism allowing the office to collect fees from CDCs (not exceeding 1 basis point of their portfolio value) to cover oversight costs. Furthermore, the bill requires the Small Business Administration to issue rules within 180 days clarifying environmental compliance procedures for CDCs under the National Environmental Policy Act, though without modifying the act's existing requirements. These provisions aim to improve program integrity, risk management, and environmental accountability in the Small Business Administration's lending programs.

Business and Industry

https://www.congress.gov/bill/119th-congress/senate-bill/2659/all-info