7(a) Loan Agent Oversight Act
This bill requires the federal government to monitor and publicly report on third-party brokers, consultants, and packagers who help small businesses secure government-backed 7(a) loans. Each year, officials must report to Congress on the fees these agents charge borrowers and lenders, the interest rates on their loans, and how often their deals involve fraud or default. This tracking is intended to reveal whether middlemen are adding excessive costs for small business owners or increasing financial risks for government lending programs.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- CongressReceives an annual oversight report with detailed data on 7(a) loan agent volume, fraud rates, default purchase rates, fees, and portfolio risk.
Who it burdens
- Small Business Administration (Office of Credit Risk Management)Must compile and submit an annual report to Congress containing detailed risk data, fraud figures, fee totals, and interest rates regarding 7(a) loan agents.
The provisions, in plain language.
Requires the Small Business Administration's Office of Credit Risk Management to submit an annual report to Congress on loan agents assisting 7(a) program borrowers, including data on agent types, referral fees paid by borrowers and lenders, interest rates, fraud and default purchase rates on agent-assisted loans, communication policies, and a risk analysis of high-volume agents.