504 Credit Risk Management Improvement Act of 2025

This bill tightens oversight of organizations that deliver SBA 504 loans, called certified development companies. It directs the SBA’s Office of Credit Risk Management to randomly review loan-closing files and send written results within 60 days, and to require fixes if problems could lead to losses . It also sets timelines for broader reviews: a written report to a company within 90 days (or notice of delay), and up to 45 business days for the company to respond if asked . The Office can use informal or formal enforcement, including fines up to $250,000, and it can suspend a company for up to 30 days or fine up to $10,000 if a required report is over 60 days late . The SBA must run a yearly risk check of all 504 loans and send Congress a detailed report every December 1 with trends, losses, recoveries, and oversight actions . To cover oversight costs, starting one year after enactment, the Office may charge each company a small fee based on its 504 portfolio, capped at 0.01% and paid from servicing fees . The SBA must also issue rules within 180 days to explain how these companies should follow federal environmental review steps; this does not change existing environmental law .

• Who is affected: certified development companies that process SBA 504 loans; SBA Office of Credit Risk Management .
• What changes: more file reviews and clear deadlines; stronger enforcement with fines; annual risk reporting; small oversight fee; clarified steps for environmental compliance .
• When: 60-day file review reports; 90-day company review reports with 45 business days for responses; annual report each Dec 1; fees start 1 year after enactment; environmental rules due within 180 days .