S. 2659 · In committee · Commerce

504 Credit Risk Management Improvement Act of 2025

What it does

Establishes the Office of Credit Risk Management to supervise certified development companies participating in the 504 loan program and conduct random file reviews of loan closings for program integrity.
Requires the Office to prepare written reports within 60 days of completing file reviews and send them to the certified development company, designated attorney, and Commercial Loan Service Center.
Authorizes the Director of the Office to take informal enforcement actions against certified development companies for violations of statutory, regulatory, or procedural requirements, and formal enforcement actions with Lender Oversight Committee approval, with civil monetary penalties up to $250,000.
Requires the Director to suspend or penalize certified development companies that fail to submit required annual reports within 60 days, with suspension periods up to 30 days or penalties up to $10,000.
Directs the Director to conduct annual portfolio risk analysis of all 504-guaranteed loans and submit reports to Congress by December 1 of each year containing analysis by industry concentration, consolidated company risk analysis, enforcement actions, and loss data.

Sep 17, 2025: Committee on Small Business and Entrepreneurship. Hearings held.

Committee: Senate Small Business and Entrepreneurship