7(a) Loan Agent Oversight Act

Bill: 118-hr-1644
Sponsor: full_name: Rep. Meuser, Daniel [R-PA-9]
Introduced: 2023-03-17
Policy area: Commerce
Subjects: Congressional oversight

Fraud offenses and financial crimes

Government information and archives

Government lending and loan guarantees

Government studies and investigations
Latest action: action_date: 2023-06-05
text: Placed on the Union Calendar, Calendar No. 76.

Summaries:
action_date: 2023-03-17
action_desc: Introduced in House
text: <p><b>7(a) Loan Agent Oversight Act</b></p> <p>This bill requires the Small Business Administration (SBA) to submit an annual report containing specified information related to 7(a) loan agents. These agents provide fee-based referral and loan application services related to the SBA's 7(a) Program. Under the 7(a) Program, the SBA provides loans and loan guarantees to small business borrowers who cannot obtain credit elsewhere on reasonable terms and conditions.</p> <p>The required report must include (1) the number and type of agents assisting applicants for 7(a) loans, (2) the number of fraudulent loans made for which an applicant used the services of a 7(a) agent, and (3) the number and aggregate dollar value of referral fees paid to 7(a) agents.</p>

action_date: 2023-06-05
action_desc: Reported to House
text: <p><b>7(a) Loan Agent Oversight Act</b></p> <p>This bill requires the Small Business Administration (SBA) to submit an annual report containing specified information related to 7(a) loan agents. These agents provide fee-based referral and loan application services related to the SBA's 7(a) Program. Under the 7(a) Program, the SBA provides loans and loan guarantees to small business borrowers who cannot obtain credit elsewhere on reasonable terms and conditions.</p> <p>The required report must include (1) the number and type of agents assisting applicants for 7(a) loans, (2) the number of fraudulent loans made for which an applicant used the services of a 7(a) agent, and (3) the number and aggregate dollar value of referral fees paid to 7(a) agents.</p>

tv_txt: IB Union Calendar No. 76 118th CONGRESS 1st Session H. R. 1644 [Report No. 118–99] 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 A BILL To amend the Small Business Act to require a report on 7(a) agents, and for other purposes.

1. Short title This Act may be cited as the 7(a) Loan Agent Oversight Act . 2. Report on 7 (a) agents Section 47 of the Small Business Act ( 15 U.S.C. 657t ) is amended by adding at the end the following new subsection: (j) Annual report (1) In general The Director shall submit to Congress, in addition to the report required under subsection (h)(2), an annual report including, for the calendar year covered by the report— (A) the number of 7(a) agents assisting applicants for loans under section 7(a), disaggregated by 7(a) agents who are attorneys, accountants, consultants, packagers, and lender service providers (as defined by section 103.1 of title 13, Code of Federal Regulations); (B) the number of fraudulent loans made for which an applicant used services of a 7(a) agent; (C) the purchase rate by the Administrator of loans for which an applicant used services of a 7(a) agent; (D) the number and aggregate dollar value of referral fees paid to 7(a) agents, disaggregated by whether the applicant or 7(a) lender paid such fees; (E) without identifying individual 7(a) agents by name, a consolidated analysis of the risk created by the individual 7(a) agents responsible for not less than 1 percent of— (i) the dollar value of loans made with the assistance of 7(a) agents; and (ii) the number of loans made with the assistance of 7(a) agents; (F) an analysis of interest rates on loans for which an applicant or 7(a) lender used services of an agent; and (G) a description of how the Administrator communicates with 7(a) agents. (2) Definitions In this subsection: (A) 7(a) agent The term 7(a) agent means a person who provides covered services on behalf of a lender or applicant. (B) Covered services The term covered services means— (i) assistance with completing an application for a loan under section 7(a) (including preparing a business plan, cash flow projections, financial statements, and related documents); or (ii) consulting, broker, or referral services with respect to a loan under section 7(a). .

June 5, 2023 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

tv_txt: I 118th CONGRESS 1st Session H. R. 1644 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 A BILL To amend the Small Business Act to require a report on 7(a) agents, and for other purposes.

1. Short title This Act may be cited as the 7(a) Loan Agent Oversight Act . 2. Report on 7 (a) agents Section 47 of the Small Business Act ( 15 U.S.C. 657t ) is amended by adding at the end the following new subsection: (j) Annual report (1) In general The Director shall submit to Congress, in addition to the report required under subsection (h)(2), an annual report including, for the calendar year covered by the report— (A) the number of 7(a) agents assisting applicants for loans under section 7(a), disaggregated by 7(a) agents who are attorneys, accountants, consultants, packagers, and lender service providers (as defined by section 103.1 of title 13, Code of Federal Regulations); (B) the number of fraudulent loans made for which an applicant used services of a 7(a) agent; (C) the purchase rate by the Administrator of loans for which an applicant used services of a 7(a) agent; (D) the number and aggregate dollar value of referral fees paid to 7(a) agents, disaggregated by whether the applicant or 7(a) lender paid such fees; (E) without identifying individual 7(a) agents by name, a consolidated analysis of the risk created by the individual 7(a) agents responsible for not less than 1 percent of— (i) the dollar value of loans made with the assistance of 7(a) agents; and (ii) the number of loans made with the assistance of 7(a) agents; (F) an analysis of interest rates on loans for which an applicant or 7(a) lender used services of an agent; and (G) a description of how the Administrator communicates with 7(a) agents. (2) Definitions In this subsection: (A) 7(a) agent The term 7(a) agent means a person who provides covered services on behalf of a lender or applicant. (B) Covered services The term covered services means— (i) assistance with completing an application for a loan under section 7(a) (including preparing a business plan, cash flow projections, financial statements, and related documents); or (ii) consulting, broker, or referral services with respect to a loan under section 7(a). .