IB 

Union Calendar No. 76 

118TH CONGRESS 

1ST SESSION H. R. 1644 

[Report No. 118–99] 

To amend the Small Business Act to require a report on 7(a) agents, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2023 

Mr. MEUSER (for himself and Mr. PHILLIPS) introduced the following bill; 

which was referred to the Committee on Small Business 

JUNE 5, 2023 

Additional sponsor: Mr. LUETKEMEYER

JUNE 5, 2023 

Reported from the Committee on Small Business; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 


pbinns on DSKJLVW7X2PROD with $$_JOB
2 

•HR 1644 RH

A BILL 

To amend the Small Business Act to require a report on 

7(a) agents, and for other purposes. 


pbinns on DSKJLVW7X2PROD with $$_JOB
3 

•HR 1644 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘7(a) Loan Agent Over5 sight Act’’. 

6 SEC. 2. REPORT ON 7(a) AGENTS. 

7 Section 47 of the Small Business Act (15 U.S.C. 

8 657t) is amended by adding at the end the following new 

9 subsection: 

10 ‘‘(j) ANNUAL REPORT.— 

11 ‘‘(1) IN GENERAL.—The Director shall submit 

12 to Congress, in addition to the report required under 

13 subsection (h)(2), an annual report including, for 

14 the calendar year covered by the report— 

15 ‘‘(A) the number of 7(a) agents assisting 

16 applicants for loans under section 7(a), 

17 disaggregated by 7(a) agents who are attorneys, 

18 accountants, consultants, packagers, and lender 

19 service providers (as defined by section 103.1 of 

20 title 13, Code of Federal Regulations); 

21 ‘‘(B) the number of fraudulent loans made 

22 for which an applicant used services of a 7(a) 

23 agent; 


pbinns on DSKJLVW7X2PROD with $$_JOB
4 

•HR 1644 RH

1 ‘‘(C) the purchase rate by the Adminis2 trator of loans for which an applicant used 

3 services of a 7(a) agent; 

4 ‘‘(D) the number and aggregate dollar 

5 value of referral fees paid to 7(a) agents, 

6 disaggregated by whether the applicant or 7(a) 

7 lender paid such fees; 

8 ‘‘(E) without identifying individual 7(a) 

9 agents by name, a consolidated analysis of the 

10 risk created by the individual 7(a) agents re11 sponsible for not less than 1 percent of— 

12 ‘‘(i) the dollar value of loans made 

13 with the assistance of 7(a) agents; and 

14 ‘‘(ii) the number of loans made with 

15 the assistance of 7(a) agents; 

16 ‘‘(F) an analysis of interest rates on loans 

17 for which an applicant or 7(a) lender used serv18 ices of an agent; and 

19 ‘‘(G) a description of how the Adminis20 trator communicates with 7(a) agents. 

21 ‘‘(2) DEFINITIONS.—In this subsection: 

22 ‘‘(A) 7(A) AGENT.—The term ‘7(a) agent’ 

23 means a person who provides covered services 

24 on behalf of a lender or applicant. 


pbinns on DSKJLVW7X2PROD with $$_JOB
5 

•HR 1644 RH

1 ‘‘(B) COVERED SERVICES.—The term ‘cov2 ered services’ means— 

3 ‘‘(i) assistance with completing an ap4 plication for a loan under section 7(a) (in5 cluding preparing a business plan, cash 

6 flow projections, financial statements, and 

7 related documents); or 

8 ‘‘(ii) consulting, broker, or referral 

9 services with respect to a loan under sec10 tion 7(a).’’. 


pbinns on DSKJLVW7X2PROD with $$_JOB
Union Calendar No. 76 

118TH CONGRESS 

1ST SESSION H. R. 1644 

[Report No. 118–99] 

A BILL 

report on 7(a) agents, and for other purposes. 

To amend the Small Business Act to require a 

JUNE 5, 2023 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


pbinns on DSKJLVW7X2PROD with $$_JOB