Bill > HR5788

This bill, titled the "504 Program Risk Oversight Act," mandates that the Administrator of the Small Business Administration (SBA) conduct an annual analysis of the risks associated with all loans guaranteed under Title V of the Small Business Investment Act of 1958, commonly known as the 504 loan program. This program provides long-term, fixed-rate financing for major fixed assets that small businesses need to expand. The bill requires the Administrator to submit a comprehensive report to Congress by December 1st of each year, starting in 2025, detailing the findings of this risk analysis. The report must include an overall assessment of program risk, broken down by industry concentration, and a consolidated analysis of risk from development companies that make a significant portion of these loans, categorized by loan dollar value, number of loans, and loan amount ranges. It also requires an analysis of risk based on how long ago the loans were originated and the type of borrower, including new businesses, businesses in operation for up to two years, and established businesses. Furthermore, the report must detail risks associated with loans for limited or special purpose properties, outline steps taken to mitigate identified risks, and provide data on the number of development companies, loans made, and their dollar amounts. The bill also mandates reporting on defaulted loans, including purchases of principal and interest by the SBA, recovered collections, and charge-offs, as well as information on enforcement actions and civil monetary penalties. Finally, the Administrator must make this report publicly available on the SBA website within seven days of submitting it to Congress.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/5788/all-info