Small Business 7(a) Loan Agent Transparency Act

Bill: 118-hr-1651
Sponsor: full_name: Rep. Phillips, Dean [D-MN-3]
Introduced: 2023-03-17
Policy area: Commerce
Subjects: Government lending and loan guarantees

Licensing and registrations

Small business
Latest action: action_date: 2023-06-05
text: Placed on the Union Calendar, Calendar No. 77.

Summaries:
action_date: 2023-03-17
action_desc: Introduced in House
text: <p><b>Small Business 7(a) Loan Agent Transparency Act</b></p> <p>This bill provides oversight of 7(a) loan agents, including by requiring the Small Business Administration (SBA) to establish a registration system for such agents whereby certain data may be collected and by mandating that such agents register with the system and pay an annual registration fee.</p> <p>These agents provide 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>

action_date: 2023-06-05
action_desc: Reported to House
text: <p><b>Small Business 7(a) Loan Agent Transparency Act</b></p> <p>This bill provides oversight of 7(a) loan agents, including by requiring the Small Business Administration (SBA) to establish a registration system for such agents whereby certain data may be collected and by mandating that such agents register with the system and pay an annual registration fee.</p> <p>These agents provide 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>

tv_txt: IB Union Calendar No. 77 118th CONGRESS 1st Session H. R. 1651 [Report No. 118–100] 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 A BILL To amend the Small Business Act to establish requirements for 7(a) agents, and for other purposes.

1. Short title This Act may be cited as the Small Business 7(a) Loan Agent Transparency Act . 2. Requirements for 7 (a) agents (a) Office of Credit Risk Management Duties Section 47(b) of the Small Business Act ( 15 U.S.C. 657t(b) ) is amended— (1) in paragraph (2), by striking and at the end; (2) in paragraph (3), by striking the period and inserting a semicolon; and (3) by adding at the end the following new paragraph: (4) any 7(a) agent. . (b) Enforcement authority (1) Office of Credit Risk Management Section 47(e) of the Small Business Act ( 15 U.S.C. 657t(e) ) is amended by inserting or 7(a) agent after 7(a) lender each place such term appears. (2) Lender Oversight Committee Section 48(c)(2) of the Small Business Act ( 15 U.S.C. 657u(c)(2) ) is amended by striking and any Lending Partner or Intermediary participant and inserting , any 7(a) agent (as defined in section 47), or any Lending Partner or Intermediary participant . (c) Registration system Section 47 of the Small Business Act ( 15 U.S.C. 657t ) is amended by adding at the end the following new subsections: (j) Registration system for 7 (a) agents (1) In general The Director shall establish a registration system for 7(a) agents that assigns a unique identifier to each 7(a) agent and collects data necessary for the Director to submit the report required under paragraph (4). (2) Requirements A 7(a) agent shall— (A) register in the system established under paragraph (1) before providing covered services to a lender or applicant; and (B) effective 1 year after the date of the enactment of this subsection, submit an annual fee for such registration to the Director. (3) Database The Director shall establish and maintain an electronic database of the types of covered services provided by each 7(a) agent. (k) Definitions In this section: (1) 7 (a) agent The term 7(a) agent means a person who provides covered services on behalf of a lender or applicant. (2) Covered services The term covered services means— (A) 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 (B) consulting, broker, or referral services with respect to a loan under section 7(a). . (d) Effective date This Act and the amendments made by this Act shall take effect 6 months after the date of the enactment of this Act.

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. 1651 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 A BILL To amend the Small Business Act to establish requirements for 7(a) agents, and for other purposes.

1. Short title This Act may be cited as the Small Business 7(a) Loan Agent Transparency Act . 2. Requirements for 7 (a) agents (a) Office of Credit Risk Management Duties Section 47(b) of the Small Business Act ( 15 U.S.C. 657t(b) ) is amended— (1) in paragraph (2), by striking and at the end; (2) in paragraph (3), by striking the period and inserting a semicolon; and (3) by adding at the end the following new paragraph: (4) any 7(a) agent. . (b) Enforcement authority (1) Office of Credit Risk Management Section 47(e) of the Small Business Act ( 15 U.S.C. 657t(e) ) is amended by inserting or 7(a) agent after 7(a) lender each place such term appears. (2) Lender Oversight Committee Section 48(c)(2) of the Small Business Act ( 15 U.S.C. 657u(c)(2) ) is amended by striking and any Lending Partner or Intermediary participant and inserting , any 7(a) agent (as defined in section 47), or any Lending Partner or Intermediary participant . (c) Registration system Section 47 of the Small Business Act ( 15 U.S.C. 657t ) is amended by adding at the end the following new subsections: (j) Registration system for 7 (a) agents (1) In general The Director shall establish a registration system for 7(a) agents that assigns a unique identifier to each 7(a) agent and collects data necessary for the Director to submit the report required under paragraph (4). (2) Requirements A 7(a) agent shall— (A) register in the system established under paragraph (1) before providing covered services to a lender or applicant; and (B) effective 1 year after the date of the enactment of this subsection, submit an annual fee for such registration to the Director. (3) Database The Director shall establish and maintain an electronic database of the types of covered services provided by each 7(a) agent. (k) Definitions In this section: (1) 7 (a) agent The term 7(a) agent means a person who provides covered services on behalf of a lender or applicant. (2) Covered services The term covered services means— (A) 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 (B) consulting, broker, or referral services with respect to a loan under section 7(a). . (d) Effective date This Act and the amendments made by this Act shall take effect 6 months after the date of the enactment of this Act.