To amend the Small Business Act to require a report on 7(a) agents, and for other purposes.
Summary
What This Bill Does
The 7(a) Loan Agent Oversight Act requires the Director of the Small Business Administration's Office of Credit Risk Management to submit an annual report to the House and Senate Small Business Committees about agents involved in the 7(a) loan program. The report must identify how many agents provide covered services, the type of agents shown on SBA Fee Disclosure and Compensation Agreements, the number and percentage of fraudulent loans involving agents, the SBA purchase rate for loans involving agents, and the amount of referral fees paid by applicants and lenders. It also requires a consolidated risk analysis of agents responsible for at least 1 percent of the number or dollar value of 7(a) loans, interest-rate reporting for loans involving agents, and a description of how SBA communicates with 7(a) agents.
Who Benefits and How
House Small Business Committee staff, Senate Small Business Committee staff, SBA credit-risk officials, SBA 7(a) borrowers, small business loan applicants, participating 7(a) lenders, inspectors general, auditors, and watchdog groups benefit from annual visibility into loan-agent activity, fraud-linked loans, referral-fee flows, risk concentrations, and interest-rate patterns in the 7(a) program. Small business applicants benefit if the reporting helps identify agent behavior that raises fraud risk, costs, or loan-performance problems.
Who Bears the Burden and How
The SBA Office of Credit Risk Management, SBA 7(a) program staff, loan-agent oversight staff, 7(a) loan agents, loan brokers, referral-fee recipients, participating 7(a) lenders, and SBA data-reporting staff must collect agent data, categorize covered services, calculate fraud rates and purchase rates, separate applicant-paid and lender-paid referral fees, prepare risk analyses, and maintain defensible reporting for Congress.
Key Provisions
- Requires an annual SBA report to the House and Senate Small Business Committees on 7(a) loan agents.
- Requires reporting on agent counts, agent types, fraudulent loans, purchase rates, referral fees, and interest rates.
- Requires a consolidated risk analysis of agents tied to at least 1 percent of 7(a) loan volume or dollar value.
- Requires SBA to explain how it communicates with 7(a) agents.
- Defines 7(a) agent and covered services, including application preparation, business plans, cash-flow projections, financial statements, consulting, brokerage, and referrals.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Requires the Small Business Administration's Office of Credit Risk Management to send annual reports to Congress on 7(a) agents, including agent types, fraud-linked loans, purchase rates, referral fees, risk concentrations, loan interest rates, and SBA communications with agents.
Key Policy Areas
Small Business, Financial Services, Government Oversight
Primary Purpose
Requires the Small Business Administration's Office of Credit Risk Management to send annual reports to Congress on 7(a) agents, including agent types, fraud-linked loans, purchase rates, referral fees, risk concentrations, loan interest rates, and SBA communications with agents.
Policy Domains
Substantive provisions
Identified Gains
- House Small Business Committee staff
- Senate Small Business Committee staff
- SBA credit-risk officials
- SBA 7(a) borrowers
- Small business loan applicants
- Participating 7(a) lenders
- Inspectors general
- Watchdog groups
Identified Costs
- SBA Office of Credit Risk Management
- SBA 7(a) program staff
- Loan-agent oversight staff
- 7(a) loan agents
- Loan brokers
- Referral-fee recipients
- Participating 7(a) lenders
- SBA data-reporting staff
Sponsors
Legislative Progress
Passed HouseCommitted to the Committee of the Whole House on the …
Passed House (inferred from eh version)
Mr. Meuser (for himself and Mrs. McIver) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
House Small Business Committee, SBA 7(a) program staff, SBA Office of Credit Risk Management
Positive-direction: House Small Business Committee, Senate Small Business Committee
Negative-direction: SBA 7(a) program staff, SBA Office of Credit Risk Management
7(a) loan agents, Loan brokers, SBA 7(a) lenders
On Motion to Suspend the Rules and Pass
7(a) Loan Agent Oversight Act
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "agents"
- → 7(a) agents providing covered loan services
- "director"
- → Director of the Small Business Administration Office of Credit Risk Management
Key Definitions
Terms defined in this bill
An agent that provides covered services in connection with a 7(a) loan.
Loan application assistance, business plans, cash-flow projections, financial statements, consulting, brokerage, referral, or related services.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology