504 Program Risk Oversight Act
Sponsors
Legislative Progress
IntroducedAdditional sponsors: Mr. Cisneros and Ms. Goodlander
Committed to the Committee of the Whole House on the …
Mr. Tran (for himself and Mr. Patronis) introduced the following …
Summary
What This Bill Does
This bill requires the Small Business Administration to conduct annual risk analyses of its 504 loan guarantee program and submit detailed reports to Congress. The reports must break down risk by industry concentration, loan size tiers, lender concentration, loan age, and borrower characteristics (new businesses vs established ones).
Who Benefits and How
Congress benefits from enhanced oversight capabilities with detailed risk data on the 504 program. Taxpayers benefit from better monitoring of federal loan guarantee exposure. Small business lending oversight improves with granular data on concentration risk among development companies.
Who Bears the Burden and How
The SBA faces new reporting requirements starting December 2025. Certified Development Companies (CDCs) that administer 504 loans may face indirect scrutiny, though the bill specifies they will not be identified by name. The reporting creates administrative burden on SBA staff to analyze and compile data across multiple risk dimensions.
Key Provisions
- Annual portfolio risk analysis required by SBA
- Reports due to Congress by December 1 each year starting 2025
- Risk analysis by industry concentration and lender concentration (1%+ of approvals)
- Risk breakdown by loan size (K, M, M, .5M thresholds)
- Risk analysis by loan age and borrower business age
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Requires SBA to conduct annual risk analysis of the 504 loan program portfolio and report to Congress on risk factors by industry, loan size, lender concentration, and borrower characteristics
Policy Domains
Legislative Strategy
"Improve congressional oversight of 504 loan program risk exposure through mandatory reporting"
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_administrator"
- → Administrator of the Small Business Administration
- "development_companies"
- → Certified Development Companies (CDCs) that make 504 loans
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