H.R.1804 - 7(a) Loan Agent Oversight Act (119th Congress)
Summary
H.R.1804, the 7(a) Loan Agent Oversight Act, mandates the Director of the Small Business Administration (SBA) to submit an annual report to Congress regarding 7(a) loan agents. This report will include data on the number of agents, fraudulent loans involving agents, loan purchase rates, referral fees, risk analysis of top agents, interest rate analysis, and communication methods with agents. The goal is to increase transparency and oversight of 7(a) loan agents within the SBA loan program.
Expected Effects
The Act will likely lead to increased scrutiny of 7(a) loan agents and potentially stricter regulations based on the report findings. This could result in a reduction of fraudulent loans and a better understanding of the role and impact of these agents. Ultimately, the Act aims to improve the integrity and efficiency of the SBA's 7(a) loan program.
Potential Benefits
- Increased Transparency: The annual report will provide Congress and the public with valuable data on 7(a) loan agents.
- Fraud Reduction: Enhanced oversight may deter fraudulent activities involving loan agents.
- Improved Loan Program Integrity: The Act aims to ensure the SBA's 7(a) loan program operates more effectively and ethically.
- Data-Driven Policy: The report's analysis can inform future policy decisions regarding loan agents.
- Better Understanding of Agent Impact: The report will offer insights into the role and influence of 7(a) agents in the loan process.
Potential Disadvantages
- Increased Administrative Burden: The SBA will need to allocate resources to collect and analyze the data for the annual report.
- Potential for Overregulation: Stricter regulations based on the report could stifle legitimate agent activity.
- Risk of Inaccurate Data: The accuracy of the report depends on the reliability of the data collected.
- Possible unintended consequences: Changes to the 7(a) program could have unforeseen impacts on small businesses.
- Limited Scope: The Act focuses solely on 7(a) agents and may not address other potential issues within the loan program.
Constitutional Alignment
The Act appears to align with the US Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce and enact laws necessary and proper for carrying out its enumerated powers. The Act's focus on oversight and transparency in the SBA loan program falls within Congress's authority to regulate economic activity. Additionally, the reporting requirements do not appear to infringe on any individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).