7(a) Program Risk Oversight Act

Key Points

• This bill changes how the government tracks risks in its most popular small business loan program. It requires the Small Business Administration to provide more details about which loans are likely to fail and why.
• The government would have to group loans by their size, ranging from small 50,000 dollar loans to large 5 million dollar ones. It also tracks whether the money went to brand new startups or businesses that have been around for a while.
• A major part of the plan focuses on stopping fraud. The agency would have to report exactly how many loans were found to be fake and how many people were punished for lying on their applications.
• The bill looks at who is giving out the loans, such as big banks, credit unions, or private lenders. It tracks which types of lenders have the most borrowers falling behind on their payments.
• To keep things honest, the final report must be posted on a public website within one week of being sent to Congress. This lets regular people see how their tax dollars are being used to support small businesses.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.