IIB 
119TH CONGRESS 
2D SESSION 
H. R. 5788 
IN THE SENATE OF THE UNITED STATES 
JANUARY 26 (legislative day, JANUARY 15), 2026 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
AN ACT 
To amend title V of the Small Business Investment Act 
of 1958 to require an annual portfolio risk analysis of 
loans guaranteed under such title, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘504 Program Risk 
Oversight Act’’. 
SEC. 2. PORTFOLIO RISK ANALYSIS OF LOANS GUARAN-
TEED UNDER THE 504 PROGRAM. 
Title V of the Small Business Investment Act of 1958 
(15 U.S.C. 695 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 511. PORTFOLIO RISK ANALYSIS. 
‘‘(a) IN GENERAL.—The Administrator shall annu-
ally conduct a risk analysis of the portfolio of the Adminis-
tration with respect to all loans guaranteed under this 
title. 
‘‘(b) REPORT TO CONGRESS.—Not later than Decem-
ber 1, 2025, and annually thereafter, the Administrator 
shall submit to Congress a report containing the results 
of each portfolio risk analysis conducted under subsection 
(a) during the fiscal year preceding the submission of the 
report, which shall include— 
‘‘(1) an analysis of the overall program risk of 
loans guaranteed under this title; 
‘‘(2) an analysis of the program risk, set forth 
separately by industry concentration; 
‘‘(3) without identifying individual development 
companies by name, a consolidated analysis of the 
risk created by development companies making loans 
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under this title that are responsible for not less than 
1 percent of gross loan approvals under this title, set 
forth separately by— 
‘‘(A) the dollar value of the loans made by 
such development companies; 
‘‘(B) the number of loans made by such 
development companies; and 
‘‘(C) an analysis of the program risk for 
such loans with a dollar value— 
‘‘(i) less than or equal to $500,000; 
‘‘(ii) greater than $500,000 and less 
than or equal to $1,000,000; 
‘‘(iii) greater than $1,000,000 and 
less than or equal to $2,000,000; and 
‘‘(iv) greater than $2,000,000 and 
less than or equal to $5,500,000; 
‘‘(4) an analysis of the program risk for loan 
guarantees made under this title for loans that were 
originated— 
‘‘(A) less than one year before the date of 
submission of the report; 
‘‘(B) at least one year, but not more than 
two years before such date; and 
‘‘(C) more than two years before such 
date; 
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‘‘(5) an analysis of the program risk for loan 
guarantees made under this title for loans that were 
originated— 
‘‘(A) to a borrower that uses such loan to 
open a business; 
‘‘(B) to a borrower not described in sub-
paragraph (A) that is a business concern that 
has been in operation for less than or equal to 
two years before the date of origination; and 
‘‘(C) to a borrower that is a business con-
cern that has been in operation for more than 
two years on the date of origination; 
‘‘(6) an analysis of the program risk for loan 
guarantees made under this title for loans that were 
originated for limited or special purpose properties; 
‘‘(7) steps taken by the Administrator to miti-
gate the risks identified in paragraphs (1), (2), (3), 
(4), (5), and (6); 
‘‘(8) the number of development companies, the 
number of loans made, and the gross dollar amount 
of the loans made under this title; 
‘‘(9) the number and total dollar amount of 
purchases by the Administrator of the principal and 
interest of loans guaranteed under this title that are 
in default, the total dollar amount of collections re-
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covered on such purchases, and the number and 
total dollar amount of charge-offs for such pur-
chases; 
‘‘(10) the number and type of enforcement ac-
tions with respect to a loan made by a development 
company under this title recommended by the Ad-
ministrator; and 
‘‘(11) the number and dollar amount of any 
civil monetary penalty assessed pursuant to an en-
forcement action described in paragraph (10). 
‘‘(c) AVAILABILITY OF REPORT.—The Administrator 
shall make available to the public on a website of the Ad-
ministration the report required under subsection (b) not 
later than 7 days after the Administrator submits such 
report to Congress. 
‘‘(d) LIMITED OR SPECIAL PURPOSE PROPERTY DE-
FINED.—In this section, the term ‘limited or special pur-
pose property’ has the meaning given by the Administrator 
in the guidance titled ‘Lender and Development Company 
Loan Programs’ (SOP 50 10 8; as in effect on June 1, 
2025).’’. 
Passed the House of Representatives January 20, 
2026. 
Attest: 
KEVIN F. MCCUMBER, 
Clerk. 
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