IB 

Union Calendar No. 77 

118TH CONGRESS 

1ST SESSION H. R. 1651 

[Report No. 118–100] 

To amend the Small Business Act to establish requirements for 7(a) agents, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2023 

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

which was referred to the Committee on Small Business 

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 1651 RH

A BILL 

To amend the Small Business Act to establish requirements 

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


pbinns on DSKJLVW7X2PROD with $$_JOB
3 

•HR 1651 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 ‘‘Small Business 7(a) 

5 Loan Agent Transparency Act’’. 

6 SEC. 2. REQUIREMENTS FOR 7(a) AGENTS. 

7 (a) OFFICE OF CREDIT RISK MANAGEMENT DU8 TIES.—Section 47(b) of the Small Business Act (15 

9 U.S.C. 657t(b)) is amended— 

10 (1) in paragraph (2), by striking ‘‘and’’ at the 

11 end; 

12 (2) in paragraph (3), by striking the period and 

13 inserting a semicolon; and 

14 (3) by adding at the end the following new 

15 paragraph: 

16 ‘‘(4) any 7(a) agent.’’. 

17 (b) ENFORCEMENT AUTHORITY.— 

18 (1) OFFICE OF CREDIT RISK MANAGEMENT.— 

19 Section 47(e) of the Small Business Act (15 U.S.C. 

20 657t(e)) is amended by inserting ‘‘or 7(a) agent’’ 

21 after ‘‘7(a) lender’’ each place such term appears. 

22 (2) LENDER OVERSIGHT COMMITTEE.—Section 

23 48(c)(2) of the Small Business Act (15 U.S.C. 

24 657u(c)(2)) is amended by striking ‘‘and any Lend25 ing Partner or Intermediary participant’’ and insertVerDate Sep 11 2014 00:26 Jun 06, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1651.RH H1651

pbinns on DSKJLVW7X2PROD with $$_JOB
4 

•HR 1651 RH

1 ing ‘‘, any 7(a) agent (as defined in section 47), or 

2 any Lending Partner or Intermediary participant’’. 

3 (c) REGISTRATION SYSTEM.—Section 47 of the Small 

4 Business Act (15 U.S.C. 657t) is amended by adding at 

5 the end the following new subsections: 

6 ‘‘(j) REGISTRATION SYSTEM FOR 7(a) AGENTS.— 

7 ‘‘(1) IN GENERAL.—The Director shall establish 

8 a registration system for 7(a) agents that assigns a 

9 unique identifier to each 7(a) agent and collects data 

10 necessary for the Director to submit the report re11 quired under paragraph (4). 

12 ‘‘(2) REQUIREMENTS.—A 7(a) agent shall— 

13 ‘‘(A) register in the system established 

14 under paragraph (1) before providing covered 

15 services to a lender or applicant; and 

16 ‘‘(B) effective 1 year after the date of the 

17 enactment of this subsection, submit an annual 

18 fee for such registration to the Director. 

19 ‘‘(3) DATABASE.—The Director shall establish 

20 and maintain an electronic database of the types of 

21 covered services provided by each 7(a) agent. 

22 ‘‘(k) DEFINITIONS.—In this section: 

23 ‘‘(1) 7(a) AGENT.—The term ‘7(a) agent’ 

24 means a person who provides covered services on be25 half of a lender or applicant. 


pbinns on DSKJLVW7X2PROD with $$_JOB
5 

•HR 1651 RH

1 ‘‘(2) COVERED SERVICES.—The term ‘covered 

2 services’ means— 

3 ‘‘(A) assistance with completing an appli4 cation for a loan under section 7(a) (including 

5 preparing a business plan, cash flow projec6 tions, financial statements, and related docu7 ments); or 

8 ‘‘(B) consulting, broker, or referral services 

9 with respect to a loan under section 7(a).’’. 

10 (d) EFFECTIVE DATE.—This Act and the amend11 ments made by this Act shall take effect 6 months after 

12 the date of the enactment of this Act. 


pbinns on DSKJLVW7X2PROD with $$_JOB
Union Calendar No. 77 

118TH CONGRESS 

1ST SESSION H. R. 1651 

[Report No. 118–100] 

A BILL 

To amend the Small Business Act to establish reposes. quirements for 7(a) agents, and for other purJUNE 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