Sponsors (2)
Official title: Amend the Small Business Investment Act of 1958 to enhance the Office of Credit Risk Management, to require the Administrator of the Small Business Administration to issue rules relating to environmental obligations of certified development companies, and for other purposes.
Introduced August 1, 2025 by Todd Young · Last progress August 1, 2025
The bill strengthens SBA oversight and clarifies NEPA compliance to reduce taxpayer risk and increase predictability for lenders and borrowers, but it creates new fees, penalties, and administrative burdens and risks rushed rulemaking that could raise costs or delay lending and projects.
Small businesses and taxpayers benefit from stronger SBA oversight and improved risk data that aim to reduce default losses and enable more targeted supervision of CDC portfolios.
Certified development companies (CDCs) and lenders get clearer standards and timelines for reviews and responses, increasing regulatory predictability for loan originations and servicing.
Clarified, standardized NEPA procedures for Title V CDC assistance reduce uncertainty for borrowers seeking SBA-backed financing, making approvals more predictable.
Certified development companies will incur new supervisory fees (up to 1 basis point) that could reduce funds available for lending or be passed on to small borrowers as higher costs.
CDC exposure to civil monetary penalties (up to $250,000) and short suspensions for reporting failures raises the risk of disrupted lending if enforcement is applied broadly.
New required reviews, corrective actions, and reporting increase administrative burden on CDCs and SBA staff, potentially diverting time away from originating and servicing loans.
Based on analysis of 3 sections of legislative text.
Expands SBA Office of Credit Risk Management oversight to CDCs in the 504 program, mandates review/reporting rules and corrective authority, and requires NEPA-procedure rules within 180 days.
Expands the Small Business Administration’s Office of Credit Risk Management authority to supervise Certified Development Companies (CDCs) that participate in the SBA 504 loan program, requires timely file reviews and corrective actions, and lets the Office use enforcement tools and fee authorities. It also directs the SBA Administrator to issue rules within 180 days clarifying how CDCs that receive Title V assistance must follow NEPA procedures, without changing NEPA’s substantive requirements.