Title: 7(a) Real Estate Appraisal Harmonization Act
Policy area: Finance and Financial Sector

Summary:
7(a) Real Estate Appraisal Harmonization Act
This bill amends the Small Business Act to revise the loan amount above which a real estate appraisal is required for a commercial real property securing a small business loan. Specifically, the bill ties the amount to the federal banking regulator appraisal threshold. (Currently, an appraisal is required for a loan of more than $250,000.)

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3552 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3552

  To amend the Small Business Act to adjust the real estate appraisal 
thresholds under the 7(a) program of the Small Business Administration 
  to bring those thresholds into line with the thresholds used by the 
          Federal banking regulators, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 5, 2018

   Mr. Risch introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
  To amend the Small Business Act to adjust the real estate appraisal 
thresholds under the 7(a) program of the Small Business Administration 
  to bring those thresholds into line with the thresholds used by the 
          Federal banking regulators, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``7(a) Real Estate Appraisal 
Harmonization Act''.

SEC. 2. APPRAISAL THRESHOLDS.

    Section 7(a)(29) of the Small Business Act (15 U.S.C. 636(a)(29)) 
is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively, and adjusting the margins 
        accordingly;
            (2) in the matter preceding clause (i), as so redesignated, 
        by striking ``With respect to'' and inserting the following:
                    ``(A) In general.--With respect to'';
            (3) in subparagraph (A), as so redesignated--
                    (A) in clause (i), by striking ``for more than 
                $250,000'' and inserting ``that is in an amount that is 
                greater than the Federal banking regulator appraisal 
                threshold''; and
                    (B) in clause (ii), by striking ``for $250,000 or 
                less'' and inserting ``that is in an amount that is not 
                more than the Federal banking regulator appraisal 
                threshold''; and
            (4) by adding at the end the following:
                    ``(B) Federal banking regulator appraisal threshold 
                defined.--In this paragraph, the term `Federal banking 
                regulator appraisal threshold' means the lesser of the 
                threshold amounts set by the Board of Governors of the 
                Federal Reserve System, the Comptroller of the 
                Currency, and the Federal Deposit Insurance Corporation 
                for when a federally related transaction that is a 
                commercial real estate transaction requires an 
                appraisal prepared by a State licensed or certified 
                appraiser.''.
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