7(a) Loan Agent Oversight Act
This bill requires the Small Business Administration (SBA) to submit an annual report containing specified information related to 7(a) loan agents. These agents provide fee-based referral and loan application services related to the SBA's 7(a) Program. Under the 7(a) Program, the SBA guarantees up to 80% of a private lender's loan to a small business borrower who cannot obtain credit elsewhere on reasonable terms and conditions.
The required report must include (1) the number and type of agents assisting applicants for 7(a) loans, (2) the number of fraudulent loans made for which an applicant used the services of a 7(a) agent, and (3) the number and aggregate dollar value of referral fees paid to 7(a) agents.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4531 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4531
To amend the Small Business Act to require a report on 7(a) agents, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 19, 2021
Mr. Meuser (for himself and Mr. Phillips) introduced the following
bill; which was referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to require a report on 7(a) agents, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``7(a) Loan Agent Oversight Act''.
SEC. 2. REPORT ON 7(A) AGENTS.
Section 47 of the Small Business Act (15 U.S.C. 657t) is amended by
adding at the end the following new subsection:
``(j) Annual Report.--
``(1) In general.--The Director shall submit to Congress,
in addition to the report required under subsection (h)(2), an
annual report including, for the calendar year covered by the
report--
``(A) the number of 7(a) agents assisting
applicants for loans under section 7(a), disaggregated
by 7(a) agents who are attorneys, accountants,
consultants, packagers, and lender service providers
(as defined by section 103.1 of title 13, Code of
Federal Regulations);
``(B) the number of fraudulent loans made for which
an applicant used services of a 7(a) agent;
``(C) the purchase rate by the Administrator of
loans for which an applicant used services of a 7(a)
agent;
``(D) the number and aggregate dollar value of
referral fees paid to 7(a) agents, disaggregated by
whether the applicant or 7(a) lender paid such fees;
``(E) without identifying individual 7(a) agents by
name, a consolidated analysis of the risk created by
the individual 7(a) agents responsible for not less
than 1 percent of--
``(i) the dollar value of loans made with
the assistance of 7(a) agents; and
``(ii) the number of loans made with the
assistance of 7(a) agents;
``(F) an analysis of interest rates on loans for
which an applicant or 7(a) lender used services of an
agent; and
``(G) a description of how the Administrator
communicates with 7(a) agents.
``(2) Definitions.--In this subsection:
``(A) 7(a) agent.--The term `7(a) agent' means a
person who provides covered services on behalf of a
lender or applicant.
``(B) Covered services.--The term `covered
services' means--
``(i) assistance with completing an
application for a loan under section 7(a)
(including preparing a business plan, cash flow
projections, financial statements, and related
documents); or
``(ii) consulting, broker, or referral
services with respect to a loan under section
7(a).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported by Voice Vote.
Reported by the Committee on Small Business. H. Rept. 117-144.
Reported by the Committee on Small Business. H. Rept. 117-144.
Placed on the Union Calendar, Calendar No. 104.
Ms. Velazquez moved to suspend the rules and pass the bill.
Considered under suspension of the rules. (consideration: CR H6092-6093)
DEBATE - The House proceeded with forty minutes of debate on H.R. 4531.
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Considered as unfinished business. (consideration: CR H6102-6103)
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 411 - 9 (Roll no. 352).(text: CR H6092)
Roll Call #352 (House)On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 411 - 9 (Roll no. 352). (text: CR H6092)
Roll Call #352 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.