To amend the Small Business Act to enhance the Office of Credit Risk Management, to require the Administrator of the Small Business Administration to issue rules relating to environmental obligations of certified development companies, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The 504 Credit Risk Management Improvement Act of 2023 enhances oversight of certified development companies (CDCs) that make SBA 504 loans by expanding the Office of Credit Risk Management duties to include CDC supervision, random loan file reviews, formal and informal enforcement actions, and fee authority. It also requires the SBA to issue rules within 180 days clarifying NEPA compliance procedures for CDCs and extends the sunset for delegated authority for accredited lenders from 2023 to 2025.
Who Benefits and How
Small businesses accessing 504 loans benefit from improved program integrity and oversight that reduces risk of losses. The SBA benefits from clearer supervisory authority and enforcement tools. CDCs benefit from clarified NEPA compliance procedures and extended delegated lending authority.
Who Bears the Burden and How
Certified development companies face increased compliance burdens from new supervision requirements, random file reviews, potential enforcement actions, and fees. Designated attorneys closing 504 loans face accountability for deficiency corrections.
Key Provisions
- Section 2: Establishes CDC supervision, random loan file reviews with 60-day reporting, enforcement actions, and fee authority under the Office of Credit Risk Management
- Section 3: Requires SBA to clarify NEPA compliance procedures for CDCs within 180 days
- Section 4: Extends delegated authority sunset for accredited lenders from 2023 to 2025
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Strengthens SBA Office of Credit Risk Management oversight of certified development companies (CDCs) in the 504 loan program by establishing supervision, file review, enforcement, and fee authority, while also clarifying NEPA compliance procedures for CDCs and extending delegated lending authority.
Key Policy Areas
Small Business, Financial Regulation, Government Operations, Environment
Primary Purpose
Strengthens SBA Office of Credit Risk Management oversight of certified development companies (CDCs) in the 504 loan program by establishing supervision, file review, enforcement, and fee authority, while also clarifying NEPA compliance procedures for CDCs and extending delegated lending authority.
Policy Domains
Whole Bill - SBA 504 Program Credit Risk Management
Identified Gains
Contextual inference, no direct clause citation- Small businesses accessing 504 loans
- SBA Office of Credit Risk Management
- Accredited lenders with delegated authority
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Certified development companies
- Designated attorneys closing 504 loans
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
ReportedReported by Mr. Cardin, with an amendment
Mr. Young (for himself, Ms. Klobuchar, and Mr. Booker) introduced …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Certified development companies
Certified development companies faces effects in multiple directions
SBA Office of Credit Risk Management, Small Business Administration
Small businesses applying for 504 loans, Small businesses using 504 loans
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_office"
- → Office of Credit Risk Management
- "the_director"
- → Director of the Office of Credit Risk Management
- "the_administrator"
- → Administrator of the Small Business Administration
Key Definitions
Terms defined in this bill
A company described under the program established under title V of the Small Business Investment Act of 1958 (SBA 504 loan program).
A CDC that receives assistance pursuant to title V of the Small Business Investment Act of 1958.
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