H.R. 1804 · Passed House · Commerce

7(a) Loan Agent Oversight Act

Sponsor: Daniel Meuser (R-PA)

What it does

• Requires the Small Business Administration to submit an annual report on 7(a) loan agents, who provide fee-based referral and application services.
• Requires the report to cover the number and type of agents assisting 7(a) applicants.
• Requires the number of fraudulent loans and the purchase rate of loans where an applicant used an agent.
• Requires the number and total dollar value of referral fees paid to 7(a) agents.

Official summary

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 provides loans and loan guarantees to small business borrowers 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, (3) the purchase rate of loans for which an applicant used the services of a 7(a) agent, and (4) the number and aggregate dollar value of referral fees paid to 7(a) agents.

Latest action

Jun 4, 2025: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Committee: Senate Small Business and Entrepreneurship