H.R.1804 - 7(a) Loan Agent Oversight Act (119th Congress)
Summary
H.R.1804, the 7(a) Loan Agent Oversight Act, mandates the Small Business Administration (SBA) to provide an annual report to Congress regarding 7(a) loan agents. This report will include data on the number of agents, fraudulent loans linked to their services, loan purchase rates, referral fees, risk analysis of high-volume agents, interest rate analysis, and communication methods with these agents. The bill aims to increase transparency and oversight of 7(a) loan agents within the SBA loan program.
Expected Effects
The bill will likely lead to increased scrutiny of 7(a) loan agents and potentially deter fraudulent activities. The SBA will be required to allocate resources to collect and analyze the data for the annual report. This could result in better-informed policy decisions regarding the 7(a) loan program and its participants.
Potential Benefits
- Increased transparency in the 7(a) loan program.
- Better oversight of 7(a) loan agents.
- Potential reduction in fraudulent loans.
- Improved data for policy decisions related to small business lending.
- Greater accountability for 7(a) agents.
Most Benefited Areas:
Potential Disadvantages
- Increased administrative burden on the SBA.
- Potential for increased costs associated with data collection and analysis.
- Possible chilling effect on legitimate 7(a) agents due to increased scrutiny.
- Risk of misinterpreting data, leading to unintended consequences.
- The report may not fully capture the nuances of the agent-applicant relationship.
Constitutional Alignment
The bill appears to align with the constitutional principle of promoting the general welfare (Preamble). Congress has the power to regulate commerce and provide for the common good, which includes overseeing small business lending programs. The reporting requirements do not appear to infringe on any specific constitutional 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).